FXStreet (Delhi) – Research Team at Nomura, notes that the overall sentiment in Chinese property market seems to be stabilising as both the price surge in large cities and decline in smaller cities have moderated.
Key Quotes
“We expect the property investment correction to continue given its structural nature. The increase in property prices moderated further in large cities. Property prices rose 2.25% m-o-m in August, on average, in Tier 1 cities, down from the recent peak of 3.20% in June. Tier 2 cities also experienced a slight moderation in the rise of property prices in August (to 0.26% from 0.29% in July).”
“Policy easing has helped improve housing sales and prices, especially in large cities, but its effectiveness seems to be declining. The structural problem of oversupply may have been eased slightly with better sales and lower housing starts, but is still far from resolved and high inventory pressures persist. We continue to expect weaker property investment growth.”
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