Zhang Xin, chief executive, Soho China, one of the mainland’s biggest commercial property developers, said she expects Beijing to announce further measures to loosen its tight control of the property market to avoid a slump.
She said, ‘The property market is very important to China. It accounts for 10% of GDP and affects many other industries such as banks. I don’t think the government will want to see a hard landing.’
China’s property market has seen a significant slowdown this year after the government put in a series of regulations, such as a restriction on mortgage lending, to take the steam out of the sector.
The volume of property transaction fell 36% in Beijing in August, according to Soho China, and dropped by an even bigger degree in Shanghai.
In a move to boost the domestic economy and the property sector, China’s central bank this week cut the country’s benchmark interest rate for the first time in six years.
Zhang Xin said she expected China’s regulators to reveal more policies to rebuild confidence in the property market amid increasing signs of disastisfaction from real estate investors.
Source: Financial Times