China’s home prices are expected to rise at a slower pace this year while sales will likely remain steady, as Beijing shifts its focus to tackling rising debt risks in the sector as the economy recovers, a Reuters poll has shown.
Average residential property price growth is estimated to cool to 3.3% in 2021, according to 13 analysts and economists surveyed from Jan. 25-29. Home prices climbed around 4.9% in 2020, a Reuters calculation of official data showed.
The price rises this year will continue to be driven by bigger cities as the credit liquidity released during the COVID-19 epidemic cannot be recalled in the short term, said Nie Wen, economist at Hwabao Trust.
Sluggish demand in smaller cities and stringent lending regulations for developers and buyers, however, will put a lid on any spurt in demand this year, analysts say.