China has taken appropriate steps to tighten its monetary policy but it may need to raise interest rates if the country's real estate market continues to show signs of overheating, the Asian Development Bank's head said on Thursday.
The government must take measures to overhaul the industry and fulfill its commitment to affordable housing for all
China's housing market is fundamentally healthy, with strong demand led by owner-occupier purchases and therefore there is no risk of a housing finance bubble like what occurred in the United States, a senior analyst at CLSA said yesterday.
Stricter loan requirements might lead to a weakened property market and price decline in the short term, but more diversified types of housing is the solution to China's property market dilemma, economists say.
I tend to believe that in the next two or three years, the property market will experience a relatively slow adjustment, the growth of housing trading volume will be lower than the average level, and housing prices will see correction or slow but continuous decline.
The situation will be somewhat like Japan's slow adjustment process after the 1990s.
There is no real estate bubble in China. Rising property prices reflect the basic law of economics.
Headlines that proclaim sheer drops in Beijing's realty prices within just a month of the government's stiff action to cool the property market seem illusory at best. No policymaker is going to buy that.
Comment on "Taxman targets multiple-home owners" (May 12, China Daily)
An outspoken property tycoon has accused the government of withholding the sales permits of high-price properties to create the appearance of a cooling market.
China should raise benchmark deposit rates as a defensive move to stabilise inflation expectations, a central bank adviser said in comments published on Wednesday.
New lending surge in April not worrisome
CPI rise may signal bank tightening
Policymakers may opt for balanced approach to combat price rises
Property prices up by 12.8% in April
The shoe attack on industry tycoon Ren Zhiqiang at a forum in Dalian shows public anger over skyrocketing housing prices could have become stronger, says an article on Rednet.cn.
Experts are worried that tightening policies may deter property developers from starting new projects and purchasing land, thereby cutting the supply and pushing up prices. Housing price drop unlikely
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