Bloomberg had reported that even as the outgoing government in China is making all out efforts, the nation’s new leaders would have to inherit the persistent matters regarding country’s property market.The present leaders discontinued their efforts to bring reforms to the market with effect from March 1, but the reforms had already affected the stock market. And even as the restraints have been introduced on property in the previous year have had some success, prices of residential properties increased following the Central Bank reduction of interest rates in order to undo the slowdown in economy.
While property is responsible for a large portion of GDP of China, with some cities depending on sale of land for profits, the leaders have been in a dilemma of having to balance their efforts to keep the prices of residences within reach of the ordinary Chinese people, and at the same time extenuating possible effects to economy.Nicholas Consonery who is the Asia analyst to consultancy firm Eurasia Group, which is based at New York, had said that, the fact that there is a fizzing condition in several chief real estate markets in urban areas is accepted by Beijing. It also is concerned to be recognized as responsive to the apprehension of the people in regard to the rising prices of housing properties. He also said that the new government is, however, well recognizant of the hazard that the nationwide market might freeze and bring about a greater deceleration in growth. During February, however, prices of residential properties rose once again in accordance with the tendency in the previous nine months.The outgoing head of state, Wen Jiabao will leave behind the challenge of sustaining reasonably prices houses to the incoming Li Keqiang.
During the leadership of Wen the prices of houses went on to rise up to 1.5 times since the start of personal home ownership in the year 1988.Zhu Haibin who is the chief China related economist with JPMorgan Chase, has said that, the polices related to property, brought about by Wen over the last ten years should not be taken as a success. The property reduction measures shall continue with the new government. However before Wen leaves he would certainly would want them to more forward, he said.
Experts predict further real estate price growth by the end of 2016 and we will keep you updated on our blog. If you liked this news, feel free to likes, share and tweet this post.