Fan Gang, an economist who advises the central bank, believes the real estate recovery will become a driving force in a V-shaped economic recovery. (What "V shaped" means is not explained but one can make a guess. It is definitely not a dead cat bounce. Alright, if you insist: v-shaped recovery describes the shape of the market’s performance in a recession and subsequent recovery when graphed. The v is not bad because it means the economy stayed bad for only the "point" of the v and then turned quickly higher.
Other letters used to describe recoveries are U, when the bottom is prolonged before a recovery, and L as was the case in Japan starting in the 90s. in that case, the recession stays around for years. None of which are as picturesque as dead cat bounce which is, as it were, a false v.)
Fan Gang told a forum in south China, "China’s property industry cannot only create great wealth but also form an important basis for sustainable economic growth."
He also said that the Chinese government should not rush to withdraw its fiscal stimulus policies that are credited with helping the real estate revival.
Some other economists, most them miserable people in their private lives, doubt that the property revival can be sustained. They see price bubbles forming in some markets, inflated by a lending frenzy in the first half of the year.
However Jinsong Du, analyst with Credit Suisse, said property prices will most likely continue to rise in coming months, mainly because of tight supply, but the growth will slow when new units are released. He said, "We believe new supply will begin to increase again in September, which means the magnitude of the price increase will likely slow in the fourth quarter."
Property Wire reports that developers and construction firms, big and small, are trying to meet the new demand, and says that last years’ downturn is now a distant memory.