Residential developer Shimao Property expects China’s sagging property sector to pick up during Q1 2009 as homebuyers return to the market.
The company expects to fulfil its annual sales target thanks to moves by Beijing to stimulate demand.
Hui Wingmau, the firm’s chairman, said: ‘The measures will help lead to a healthy and stable development of the property sector, and aid homebuyers to regain confidence. Homebuyers who are now staying on the sidelines will eventually return to the market. We will be able to see a recovery in the coming spring.’
China’s Central Bank this week announced its biggest interest rate cut in 11 years to 5.58% in order to spur private borrowing and support a multibillion-pound stimulus package to boost slowing economic growth.
The fall in borrowing costs should act to help rejuvenate China’s housing market.
Source: Homes Overseas