House price growth in China is expected to slow next year to its lowest rate in five years. Ten property analysts and economists, estimated prices would rise 3.1% in the 12 months to December 2020, the slowest growth since the 1.8% increase recorded in 2015. The volume of sales was predicted to fall 3% next year, reported the Financial Times.
A further moderation in China’s frothy market would be music to the ears of Chinese leaders, who have been cracking down on speculative buying for nearly four years as prices soared in almost every city-tier while income growth lagged.
But policymakers have also been walking a tightrope, careful not to sink the market entirely – a crucial growth driver directly impacting more than 40 industries – as the economy is also dragged by an ailing manufacturing sector and flagging consumer confidence amid a trade war with the United States.
Daniel Yao, Head of Research, JLL China, says he expects China’s overall property policymaking to remain “tight” in 2020 although more monetary policy easing may be coming to rescue the economy amid strong headwinds.