China’s property crisis: stimulus measures unlikely to prop up beleaguered home sales in the long run, Moody’s warns
- The impact is likely to be short-lived, with home sales remaining sluggish for at least the next six months, the credit ratings agency says
- This is likely to further crimp the ability of developers to meet their mountain of debt obligations, Moody’s says in a report
In the first eight months of the year, home sales fell 1.5 per cent.
But there have been recent signs that a slew of supportive government measures are at least having some impact.
In September, the weighted average prices of new homes in China fell 1.4 per cent on a monthly basis, half the 2.8 per cent decline in August, according to the country’s statistics bureau, which tracked 70 cities.
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In top-tier cities such as Beijing and Shanghai, the prices of new homes rose by 0.4 per cent and 0.5 per cent, respectively. Lived-in home prices have also seen some improvement with prices in large cities increasing by about 0.2 per cent to arrest a four-month slide.
