China is likely to roll out more measures before long to stimulate demand for housing, but recovery in the all-important property market is unlikely for another year.
Nationwide urban real estate prices rose only 1.6% in the year to October, the weakest rise since Beijing started publishing the data in 2005, and economists expect prices soon to be in outright decline despite steps to boost the economy.
Li Zhanhong, vice president of Jinke Group, a developer headquartered in the western city of Chongqing, said, ‘The immediate impact of the stimulus policies is limited.’
China lowered mortgage rates, reduced down payments
and cut transaction taxes on October 22 to make it easier
for people to buy homes. Then on November 9 it unveiled a broad package to stimulate domestic demand with a headline price tag of RMB4 trillion. ($586 billion).
Comments a day later by Premier Wen Jiabao, seen above, raised expectations that additional steps could emerge when top officials gather to chart economic policy for 2009.
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