Cooling Down of Property Market to Face New Pressure Next Year
As local government is moving to cool down the housing property market and control developers in building on new supplies of land, China might be facing a new pressure on its property market by next year. Although a slowdown in housing prices can be seen and is slowly increasing since posting a double digit increase in the past several months might assist the Central Government on its campaign in keeping affordable housing for the people of China but there is no clear trend is seen that will be enough to control the market in the time were a strong demand to buy homes is seen.
Even when the market is still strong signs of moderation are already seen as proven by a recent survey that the average new home price growth is starting to slow down on a month to month basis. The survey was taken by China Real Estate Index System that tracked the price of new homes in 100 Chinese cities. The real estate prices represents a quandary for the government and the property sector is contributing significantly to the economy that is being compared with the growth rate of above 8 percent in the past years which at the same time the price growth places housing out of the reach of several Chinese thus creating the possibility of instability.
Experts say that the property market might relax next year as the property sector is already at its peak. Prices are expected to slow down since one of the reasons for its peak is land purchases by property developers has been strong this year and might lead to new property projects.