Though Chinese policymakers will adopt more policy tightening measures to rein in the pace of property price appreciation, Bank of America Merrill Lynch analysts believe these measures won’t trigger a property market crash. Helen Qlao and team said in their September 28 report titled “Would a potential tightening in property policy spoil the party?” that they anticipate moderation in home sales and property investment growth in China.
Excess demand pushing up housing prices in China
Qlao and colleagues point out that property price increases in China have been quite substantial in Tier 1 and 2 cities at 30.5% and 13.4% yoy, respectively, in August. The analysts note that with housing supply slow to catch up, there is a general concern about excess demand pushing...
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