10 Things To Watch in Chinese Property Market

An article in iFeng outlines 10 things to watch in the second half of 2015.

1. Calls to completely eliminate buying restrictions will be incessant.

Rumors said Shenzhen would cancel buying restrictions on June 17, which the government denied. Beijing was also rumored to end buying restrictions, also denied. Expect constant rumors or calls for ending restrictions.

2. Differentiation in regulation will be clear.

The policy gap between cities that are supporting real estate and those trying to stop price increases will widen.

3. RRR and interest rate cuts will continue.

The biggest rate cutting effort since 2008 is underway. Expect more.

4. First-tier cities pick up, but price increases will be limited

Developers are focused on inventory reduction above all else.

5. High-end market picks up, but spotty

Some high-end home developers are doing great, others not.

6. The "Land Kings" will return

Title given to those who pay record high prices (including large premiums) at land auctions. First-tier city land sales are seeing high prices and some cities such as Suzhou and Hangzhou are also seeing prices rise. (Supply is being restricted to help boost prices.)

7. People will abandon stocks for real estate

8. Internet + arrives

The second half will bring the first real emergence of the developer push into Internet integration.

9. Real estate tax will be difficult to move forward.

10. Prices will rise, and this will raise calls for stricter regulations

Price increases will bring back calls for more regulation, but unless developers start hiking prices, it's unlikely cities will clamp down.

iFeng: 下半年房地产将发生10件大事 与你息息相关

No comments:

Post a Comment