Industry News
Mixed forecast for China’s real estate in 2009
(chinadaily.com) - According to the report, many residents are willing to buy self-use houses but are blocked by high house prices. It is suggested that developers should adjust prices and enhance promotions, since real estate markets are very sensitive to price changes.
Furthermore, favorable polices also prop up the housing market. On Oct 22, 2008, the central bank announced that the down payment threshold would be lowered from 30 percent to 20 percent. It also allowed financial institutions to offer favorable policies to support those making their first home purchase for self use and those buying self-use housing for improving living conditions. In addition, the loan interest rate has been cut five times since September.
Looking ahead, the report said that second-home buyers will play an important role in the housing market of 2009, since more favorable policies can be expected to reduce the cost of transactions.
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