China Overseas Land, the largest local listed mainland property developer, said on Friday the China property market has bottomed out and expects the overall property environment to improve in 2009.
Chairman Kong Qingping, seen here) told reporters of China Overseas Land, ‘The China property market had gone through a deep adjustment particularly in southern China last year and was already at its bottom. The environment this year will not be as bad as last year.’
Kong said Beijing’s measures to support the property market are likely to be effective but homebuyers are still tentative after the China property slide.
Brokerage CLSA and consultants Savills expect average home prices in Beijing and Shanghai to fall 20-25% this year, similar to declines in Shenzhen and Guangzhou in 2008.
Beijing concocted a policy mix that included encouraging banks to resume lending to developers as well as tax concessions and cheaper mortgages for home buyers as part of efforts to support the ailing property market amid the global slowdown.
Reuters reported that China’s economic growth slowed to 6.8% in the last quarter of 2008, dragging down the annual rate of expansion to a seven-year low of 9.0%. China targets annual growth of 8% or above in order to absorb waves of new job seekers.
Chairman Kong Qingping said, ‘I’m confident in the China property market, especially if the 8% growth is achieved.’