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在线翻译:
szdaily -> Business -> 
Home prices expected to rise on falling inventories
    2018-04-05  08:53    Shenzhen Daily

HOME prices are expected to rise faster this year than previously thought thanks to tight supply and government policies that promote smaller cities seeking to lure first-time buyers and upgraders, a recent poll showed.

But price growth is still expected to be relatively muted — well below the gains made in 2017 — as rising borrowing costs and other curbs are likely restrain the market and pressure developers to accelerate project launches to raise cash, according to the Reuters poll that surveyed 13 property analysts and economists from March 23 to 30.

China’s housing market has enjoyed a more-than-two-year boom, giving a major boost to the economy but also fanning fears of bubbles, prompting authorities to impose measures to stem speculation since 2016.

While more than 100 cities have introduced measures to cool prices, policymakers have been careful not to tap the brakes too hard as real estate has been a major contributor to economic growth.

China aims to pursue “stable and healthy development” of the property market in 2018, protecting the interests of first-time buyers and upgraders while taming speculation, Premier Li Keqiang said in his work report in March.

Nationwide, new home prices on average are expected to increase 1 percent for the whole year, after rising a median 2.5 percent in the first six months from a year earlier, according to the poll.

“Judging by the government’s macro-prudential policies, prices in the biggest tier-1 and tier-2 cities will remain stable or even tread lower, but it is likely that the rest of China will still enjoy moderate price gains,” said Emily Cao, head of research at Colliers International in Beijing.

New home prices in 2017 still crept up 5.3 percent from a year earlier, with sales by floor area picking up 7.7 percent, largely driven by a buying frenzy that has spread from the big metropolises to smaller centers.

Falling inventories after more than two years of strong sales and a constant supply shortage in China’s most populous cities, as well as government price caps, also suggest limited room for prices to fall further, despite the stiff curbs in those markets.

“From what we’ve seen so far, inventories in most of the cities remain pretty tight,” Dongxing Securities analysts wrote. Inventories in 75 major cities monitored by E-house China R&D Institute fell in March from a year earlier, its latest report showed.(SD-Agencies)

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