BNP Paribas analysts Chen Xingdong and Isaac Meng said in a report, “The State Council and political leadership have demonstrated a strong political will, at least at a central level, to curb the property bubble.” The cabinet “considers elevated property prices and further rises as not only economic-financial risks but also as undermining social stability.”
Bloomberg BusinessWeek reported that BNP joins Citigroup in predicting prices may drop as much as 20% as tightening measures take hold.
A “turning point” in the real-estate market is “unavoidable,” Citigroup analysts Oscar Choi and Marco Sze said in a report.