China: Positive momentum In Property Sector To Continue
$MCO
Positive sales momentum for China’s property sector, a major pillar for economic growth, will continue into Q-4 of Y 2015, Moody’s Investors Service said late last week.
Moody’s (NYSE:MCO) attributed the positive momentum to supportive monetary and regulatory polices implemented since 2-H of Y 2014.
“These favorable policies, including the increased availability of mortgages, as well as lower down payments and funding costs to buyers financing their 2nd homes with bank mortgages, will support overall sales over the next 12 months and help maintain healthy Y-Y growth into Q-4 of Y 2015,” said Stephanie Lau, a Moody’s Assistant Vice President and Analyst.
Lau made the remarks as Moody’s latest “China Property Focus” was released.
During the 1st 9 months, sales of residential and commercial property went up 15.3% Y-Y to RMB 5.7-T (US$896-B), with the growth rate unchanged from that recorded in the 1st 8 months, the National Bureau of Statistics (NBS) data showed. Meanwhile, property investment grew 2.6% Y-Y.
The Moody’s report also notes a continued rebound in residential home prices in September 2015 in 70 major Chinese cities.
Of 70 large and medium-sized cities surveyed in September, new home prices climbed M-M in 39 cities, up from 35 in August, according to the NBS. Year over year, 12 cities reported new home price increases, up from nine in August, with Shenzhen posting a surge of 38.3% in home prices, the sharpest increase among major Chinese cities.
Moody’s expects that the pressure on home prices will continue to ease through Y 2015.
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Paul Ebeling
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