In an internal e-mai, Yu Liang, the president of Vanke, China’s biggest listed property developer, said property will probably see a slowdown in growth in the near future, but its long-term outlook is still rosy.
China’s property market is showing signs of losing momentum after surging for the past few years. House prices in Shenzhen, Vanke’s hometown, have been the hardest hit among 17 major Chinese cities, according to official figures.
Yu Liang told Vanke staff in an e-mail, ‘The strong wait-and-see sentiment, the plunge in trading volume and bearish projections for the industry are all in sharp contrast to the conditions in 2006 and 2007.
‘From a short-term perspective, a number of uncertainties exist during the adjustment period . . . Based on our judgment, the lack of capital in the industry will continue in the years ahead.’ (The illustration is at the top of the Vanke site. Its symbolism is unclear but it is pretty.)