Moody’s Investors Service has for the first time in about two years projected a favourable outlook for China’s property sector, based on better sales and funding conditions for developers, according to a report released on Monday, reports the South China Morning Post. Home sales are expected to report flat growth in the next 12 months after a gradual recovery in sales volume from a 28% drop last year, thanks to China’s economic recovery and favourable government policies stimulating home demand, the international rating agency said.
The robust sales growth of as much as 6% year on year in the first quarter will, however, not continue and the recovery will be uneven, the Moody’s report said.
“We expect homebuyers’ income growth and consumer confidence to gradually improve amid China’s economic recovery, which will increase their willingness to spend on property,” the report said, adding that some favourable measures by the government—ranging from relaxing home purchase restrictions to cutting mortgage rates—will support sales.
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