Lender predicts rebound in realty investment next year

Bank of China Ltd said on Tuesday that it expects investment in the real estate sector to rebound next year, with first-tier cities being the main beneficiaries. Driving the recovery next year would be the favorable property policies introduced in the second half of 2014, such as the further relaxation of purchase controls and lower lending rates.

The State-owned lender said that a study undertaken by its research unit - the Institute of International Finance - anticipated real estate investment will grow by 10 percent year-on-year next year, based on the steady growth in newly constructed property and funding availability.

Among a raft of measures being introduced by the government that aimed to boost the real estate sector, the authorities are likely to raise the funding support of subsidized housing, such as low-rent housing, affordable housing and fixed-price housing. In addition, the government is likely to improve the housing finance system and accelerate the growth of mortgage securitization, the report said.