China Economic Review

China’s property sector growing faster than expected

China’s property sector is set to grow faster than previously expected, according to a new Reuters poll, potentially adding to the risk of a bubble in one of the country’s most critical industries.

House prices will rise 5% in 2018 and 3.3% in the first half of next year, a poll of 16 property market analysts and economists predicted.

This is markedly above the 1% increase forecast by a similar poll taken in March, which bet on a cooling down in prices after the rise of 5.4% posted in 2017.

Property investment, meanwhile, is expected to grow 8% this year, compared with the 5% projection in May, driven by an acceleration in the construction of public housing. This may help to bolster demand as China tries to boost a slowing economy but will add heat to a sector currently riding on a three-year boom period.