China property sales continue to grow: Moody’s

Beijing, Oct 2 (IANS) China’s real estate market will grow and remain resilient for the rest of 2015, according to rating agency Moody’s.

“We expect our rated developers to launch more projects for sale and take advantage of the current strong sales momentum,” Xinhua quoted Stephanie Lau, a Moody’s assistant vice president and analyst as saying.

Sales value of commercial housing in the first eight months went up 15.3 percent year on year to $755 billion.

The growth rate was 1.9 percent higher than that in the first seven months, indicating nascent signs of recovery, according to the National Bureau of Statistics (NBS).

Moody’s attributed the growth mainly to the supportive monetary and regulatory policies implemented since the second half of 2014.

China’s housing market took a downturn in 2014 on a weak demand and a surplus of unsold homes. The cooling has continued into 2015, with both sales and prices falling and investment slowing.

The central bank has moved to combat the slowdown, cutting benchmark interest rates four times since November and lowering banks’ reserve requirement ratio twice since February.

To help emerging signs of improvement in the property sector, the country eased down payment requirements for second home purchases and some local governments have rolled back their restrictions on home purchases.

“These favourable policies will support sales over the next 12 months and help maintain healthy year-on-year growth for the rest of 2015,” Lau said.

Average new home prices of the 70 large and medium-sized cities surveyed in August grew 1.7 percent year on year compared with a drop of 0.4 percent in July, marking growth for the first time in the past 11 months, thanks to better market confidence and lower interest rates, the NBS said.

For existing homes, 43 cities posted gains in August on a monthly basis, 11 reported flat prices, while 16 saw price declines.

Moody’s expected the pressure on home prices will continue to ease gradually through 2015.

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of or any employee thereof. is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here