Industry data seem to suggest that the first round of government measures aimed at reviving China’s ailing property sector, including the deep cuts in interest rates, are having an impact.
The Shanghai city government has reported that the nunber of new homes sold in November was 47% higher than the number sold in September and 36% higher than in October.
Sales of existing homes in Shanghai were up 68% in November compared to the previous month. In Chongqing, sales volumes reached 1.38 million square meters in October and 1.1 million square meters in November, up from less than 1 million square meters in September.
Jing Ulrich, head of China equities at J.P. Morgan, in a recent report, wrote, ‘In recent weeks, there have been signs that property price reductions, aggressive interest rate cuts and preferential mortgage policies are beginning to lure buyers back in some key markets.’
Rong Ren, chief executive officer of Harvest Capital Partners, a private equity firm focusing on the property sector in China, also remains confident about the sector’s long-term future. He said, ‘The fundamentals are strong.’
Source: Business Week
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