Business / Industries

Chinese property sector sales momentum to continue: Moody's

(Xinhua) Updated: 2015-10-29 16:55

BEIJING - Positive sales momentum for China's property sector, a major pillar for economic growth, will continue in the last quarter of 2015, Moody's Investors Service said Thursday.

Moody's attributed the positive momentum to supportive monetary and regulatory polices implemented since the second half of 2014.

"These favorable policies, including the increased availability of mortgages, as well as lower down payments and funding costs to buyers financing their second homes with bank mortgages, will support overall sales over the next 12 months and help maintain healthy year-on-year growth into the fourth quarter of 2015," said Stephanie Lau, a Moody's Assistant Vice President and Analyst.

Lau made the remarks as Moody's latest "China Property Focus" was released.

During the first nine months, sales of residential and commercial property went up 15.3 percent year on year to 5.7 trillion yuan ($896 billion), with the growth rate unchanged from that recorded in the first eight months, the National Bureau of Statistics (NBS) data showed. Meanwhile, property investment grew 2.6 percent year on year.

The Moody's report also notes a continued rebound in residential home prices in September 2015 in 70 major Chinese cities.

Of 70 large and medium-sized cities surveyed in September, new home prices climbed month on month in 39 cities, up from 35 in August, according to the NBS. Year over year, 12 cities reported new home price increases, up from nine in August, with Shenzhen posting a surge of 38.3 percent in home prices, the sharpest increase among major Chinese cities.

Moody's expects that the pressure on home prices will continue to ease through 2015.

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