China: The pace of property price increase is expected to fall further, undermining investment growth | Eurobank
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China: The pace of property price increase is expected to fall further, undermining investment growth

• 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.