1. LINE

      Text:AAAPrint
      Economy

      Policymakers walk a fine line with property market

      1
      2016-04-19 14:07Xinhua Editor: Gu Liping
      (Xinhua file photo)

      (Xinhua file photo)

      China's warming property market has helped to put the broader economy on the right track in 2016, but in an industry fraught with uncertainties, policymakers have to walk a more cautious line between sustaining momentum and avoiding potential risks.

      The housing market recovery gathered steam in several top-tier cities since the second half of 2015 following government support measures to reduce inventories, and the momentum is spreading to more regions.

      Of 70 large and medium-sized cities surveyed in March, 62 saw new home prices increase month on month, up from 47 the previous month, data from the National Bureau of Statistics (NBS) showed on Monday.

      In floor terms, property sales jumped 33.1 percent in the first three months, much higher than the 6.5-percent gain in 2015.

      Boosted by the strong sales, property investment is picking up, fueling economic growth to 6.7 percent in the first quarter, accompanied by a string of encouraging indicators.

      According to NBS spokesperson Sheng Laiyun, the warming housing market, which affected activity in sectors ranging from steel, cement, furniture to home appliances, contributed more GDP growth in the first quarter than it did a year earlier.

      Given the huge overhang of unsold homes, which the NBS put at 735.2 million square meters by March, the question remains: Is the current momentum sustainable?

      "We do not expect this rebound to last long as room for further easing in the sector seems limited, and pressure from severe oversupply has not abated," noted Japanese securities trader Nomura.

      Authorities have cut interest rates, reduced downpayments for mortgages and removed existing home restrictions in nearly all but top tier cities.

      For Minsheng Securities, the rebound in property investment brings with it bigger risks for the future, as it will only add to the number of unsold homes.

      "The longer the rebound lasts, the bigger risks it will bring," it stressed.

      Another key issue that will challenge policymakers is the growing divergence in the property market, with better economically positioned areas reporting drastic price rises, and less developed regions showing muted response.

      In March, new home prices soared 62.5 percent year on year in the southern city of Shenzhen, the sharpest increase last month among all the major cities, followed by Shanghai, Nanjing and Beijing, where prices surged 30.5 percent, 17.8 percent and 17.6 percent year on year, respectively.

      In smaller cities where oversupply is most prominent, prices remain subdued.

      The contrasting picture has prompted local authorities to take different approaches: Shenzhen and Shanghai have tightened policies to curb speculative purchases and contain risks for a bubble, while third- and fourth-tiered cities are exploring new ways to spur sales.

      For first- and second-tier cities, the buying mania over the past few months has eased demand, which will limit further price rises, while smaller cities still have a long way to go to resolve the supply glut, according to HSBC chief China economist Qu Hongbin.

      "It is still quite unclear whether the warming-up is sustainable and whether property investment could continue to provide a solid support for the broader economy," he noted.

      To address the uncertainties, Qu suggested that a special fund be established and the issuance of more home purchase subsidies to migrant workers to integrate the destocking process with the country's urbanization drive.

        

      Related news

      MorePhoto

      Most popular in 24h

      MoreTop news

      MoreVideo

      News
      Politics
      Business
      Society
      Culture
      Military
      Sci-tech
      Entertainment
      Sports
      Odd
      Features
      Biz
      Economy
      Travel
      Travel News
      Travel Types
      Events
      Food
      Hotel
      Bar & Club
      Architecture
      Gallery
      Photo
      CNS Photo
      Video
      Video
      Learning Chinese
      Learn About China
      Social Chinese
      Business Chinese
      Buzz Words
      Bilingual
      Resources
      ECNS Wire
      Special Coverage
      Infographics
      Voices
      LINE
      Back to top Links | About Us | Jobs | Contact Us | Privacy Policy
      Copyright ©1999-2018 Chinanews.com. All rights reserved.
      Reproduction in whole or in part without permission is prohibited.
      主站蜘蛛池模板: 最近中文字幕免费2019| 爽爽爽爽爽爽爽成人免费观看| 久久A级毛片免费观看| 五月天网站亚洲小说| 久久精品免费观看| 亚洲AV日韩AV永久无码绿巨人| 久久国产乱子伦精品免费看| 日本亚洲视频在线| 热re99久久6国产精品免费| 亚洲一二成人精品区| 8x8x华人永久免费视频| 亚洲另类自拍丝袜第1页| AV片在线观看免费| 国产免费久久久久久无码| 久久亚洲av无码精品浪潮| 91视频免费网站| 亚洲欧洲精品在线| 国产人在线成免费视频| 亚洲精品GV天堂无码男同| 亚洲精品无码久久毛片| 三级黄色免费观看| 精品国产麻豆免费网站| 国产AV无码专区亚洲AV琪琪 | 欧亚精品一区三区免费| 国产成人亚洲综合一区| 四虎影视在线永久免费观看| 国产无遮挡色视频免费观看性色| 国产亚洲一区二区在线观看| a拍拍男女免费看全片| 国产亚洲漂亮白嫩美女在线| 久久亚洲高清观看| 在线观看日本免费a∨视频| 特级毛片全部免费播放| 看全色黄大色大片免费久久| 一级做a爰片久久免费| 亚洲麻豆精品果冻传媒| 国产免费观看视频| 日本在线看片免费人成视频1000| 国产精品亚洲色婷婷99久久精品| 国产V亚洲V天堂无码| 国产精品成人免费综合|