Tuesday, June 05, 2012

China may likely loosen grip on property measures

China could loosen its grip on property tightening measures to encourage more home buying activity as the central government looks to support economic growth, according to Deutsche Bank AG.

Jason Ching and Tony Tsang, Hong Kong-based analysts at Deutsche Bank, said more ‘fine-tuning’ of property curbs is expected due to continued financial pressure and lower land sales.

“It looks like the Beijing market has broken away from the wait-and-see attitude,” they said, citing the rebound in sales.

“We believe that the policy direction for both the China economy and property market is now quite clear - 'loosening' to support economic growth.”

According to investment advisory firm CEBM Group Ltd, the central government’s tolerance of the attempt to ease property measures is growing after housing prices fell. Residential transactions in Beijing climbed 30 percent to 23,174 units in May, the highest level since the city implemented restrictions in February 2011.

In Shijiazhuang, local officials are planning five loosening measures in the property market, which includes allowing families with a per-capita floor area of less than 30.6 sq m to acquire their third property.

The city’s attempt to relax property measures shows that revenue is experiencing intensified pressure from slowing growth.

View the original article here

Source from Property Guru

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