China’s real estate market will begin to recover in the second half of 2009, aided by easier government policies and rising investment demand according to CB Richard Ellis.
Chris Brooke, the global property services provider’s chief executive for Greater China. said, ‘One would hope that sentiment will recover sometime in 2009, and that we’ll get a more positive sentiment in the residential sector sometime between the middle and end of 2009.’
The outlook for property, which accounts for about a quarter of fixed investment, is critical for the overall Chinese economy.
The World Bank cited a depressed real estate market, along with faltering exports, to explain why it had lowered its 2009 growth forecast.
China’s real estate market began to falter late last year. The number of transactions has tumbled and high-end prices in some cities such as Shenzhen have fallen as much as 40%.
Nationwide, property inflation slowed to 1.6% in October. As recently as March, prices were rising at a double-digit pace compared with a year earlier.
However, Chris Brooke told reporters that some investors are looking at buying opportunities, tempted by a strong economic growth outlook in the medium term, attractive valuations in some areas and developers’ hunger for funding.
Brooke said he expected to see deals closing in 2009.
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