As August approaches the end, the Chinese real estate market enters the traditional peak season of September and October.
Last year, the peak season of September and October was less than kind to real estate developers. In fact, as the signs of slowdown started to become very obvious with increasingly tough real estate market regulations, the peak season was a huge disappointment, and the weakening of the market became obvious then.
This year, the weakness continued into the year, but local governments have been fine-tuning policies which reversed some of the buying restrictions (among other things). Later, of course, the People’s Bank of China cut interest rates twice, which helped the market warming up, especially in the past 2 months or so. Even real estate developers are getting excited by buying plots of land, and the local governments are relieved to find out that there are someone developers keen to buy land plots (on dip) that they simply dump a whole lot of land plots for developers to choose from. According to Securities Times, developers will push more inventory up for sale in the coming two months, the quickest for the year so far.
Of course, the central government would be less than impressed by the rebound of real estate prices, as we have noted for a number of times now, and the National Development and Reform Commission stated that it will implement measures to prevent home prices from rebounding according to Economic Information. Meanwhile, some banks have reportedly cancelled previously discount on mortgage rates (via 21st Century Business Herald).
In any case, we will be watching the developments in the coming two months with great interest…
This article originally appeared here: China’s real estate developers are looking forward to peak season
Also sprach Analyst – World & China Economy, Global Finance, Real Estate
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