THE outlook for China’s residential property market in 2017 is stable, Moody’s Investors Service said in a report yesterday.

    A sharp decline in home prices is “unlikely” in the next six to 12 months, given relative low inventory levels in first- and second-tier cities, the report said.

    In fact, home prices are projected to rise modestly in 2017 against an already high base, said Kaven Tsang, a Moody’s vice president and senior credit officer.

    In 2016, total sales value will have risen 25 percent by the end of the year from a year earlier, due to a fierce price rally mainly propped up by China’s bigger cities, Tsang said.

    But sales volumes are likely to decline around 5 to 10 percent in 2017 due to tightening measures implemented in major cities in September and October, the report said.

    However, it noted that restrictions were less severe than those seen in previous cycles in 2011 and 2014, and monetary conditions remain broadly supportive to the property sector.(SD-Agencies)