China: The pace of property price increase is expected to fall further, undermining investment growth
China: The pace of property price increase is expected to fall further, undermining investment growth
Global & Regional Focus Notes
02 Δεκεμβρίου 2011
• China’s property prices fell for a second consecutive month in October on a monthly basis, as a result of persistent tightening measures by the government to slow down property price increases. • Property sales point to further deceleration of the pace of property price increase in the coming months. • The correction in property prices is likely to undermine investment growth, while its negative impact on China’s private consumption seems limited. • Given that the correction in home prices is policy induced, the government could simply reverse its tightening measures, if there is a significant negative impact on the economy.