Fraser Hammond Anticipates Increase in China Property Prices
Fraser Hammond says Chinese officials aim for stable and healthy development in the country's property sector this year.
TAIPEI CITY, Taiwan, April 5, 2018 (Newswire.com) - Fraser Hammond economists say property prices in China are expected to increase faster than initially anticipated this year. Fraser Hammond economists believe reduced supply and government schemes promoting smaller cities to first time property purchasers could account for the acceleration in property prices in 2018.
However, as interest rates increase and other restrictions limit the property market, Fraser Hammond economists say price growth is still expected to be somewhat weaker than the significant gains made last year.
The boom experienced by China’s property market has given a significant boost to the economy but has also fueled concerns over bubbles and as a result, since 2016, Chinese authorities have implemented more stringent measures and regulations in a bid to curb speculation.
Fraser Hammond economists say that, although many Chinese cities have implemented regulations designed to cool prices, authorities have been reluctant to come down too hard on a sector that has boosted the country’s overall economic growth.
In a report to the yearly meeting of parliament last month, Premier Li Keqiang stated that China is seeking solid and sustainable growth in the housing market this year and that the country aims to guard the interests of first time property buyers and to limit the risks of speculation.
Fraser Hammond economists say that property prices are expected to increase by 1 percent in 2018.
Fraser Hammond economists say property prices in the larger cities will likely remain the same or even see a slight decline but that the rest of China will offset this with better price growth.
Source: Fraser Hammond
Categories: Property and Casualty