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China’s property bubble still buoyant
Predictions of an imminent crash in real estate prices is a favorite among China-doomsayers. But it’s not going to happen yet, according to a report by Moody’s Investor Services published on Thursday (subscription).
Positive sales momentum for the country’s property sector will continue this quarter, fired by supportive monetary and regulatory polices implemented since the second half of last year.
"These favorable policies -- including the increased availability of mortgages, as well as lower down payments and funding costs to buyers financing their second homes with bank mortgages -- will support overall sales over the next 12 months and help maintain healthy year-on-year growth into 4Q 2015," says Stephanie Lau, a Moody's assistant vice president.
Photo: drnan tu