Home prices in China will likely move up slowly next year as the country’s economy recovers and residential demand grows, said a Reuters survey.
The study found that home prices could climb 7.0 percent next year and 5.0 percent in 2014. As a result, the government is expected to maintain its cooling measures which aim to curb inflation.
The recent poll of 15 economists and property analysts also revealed that the small increase in prices could be deemed acceptable to policymakers, as long as it supports a potential economic recovery.
Property investment took up 14.4 percent of China’s gross domestic product (GDP) in the first three quarters of 2012.
Li Wei, China economist at Standard Chartered Bank in Shanghai, said: “We don’t think we will see a drop of home prices next year as there is strong demand in the property market.”
“If the economy is rebounding and consumer inflation is quickening, how can home prices fall?”
Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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