Developers face rising competition

Source: Xinhua | 2017-03-15

REAL estate developers in China are facing increasing competition this year as regulatory controls will continue to be strictly enforced, which are likely to slow sales growth, Moody’s Investors Service said in a report released yesterday.

The measures to curb rapidly rising property prices in major cities will remain tight or become even tighter in 2017, while policies in lower-tier cities where inventory is high will remain accommodative, according to Moody’s.

The ratings agency made its conclusion after the central government’s latest reiteration during the National People’s Congress that it would execute differentiated policies in the property sector, and fine-tune measures in cities where property prices are rising rapidly.

The latest round of restrictive measures introduced since late September has eased the growth in property prices in first-tier cities in recent months.