China has seen a surge in property purchase plans due to concerns that house prices will rise further, according to UBS China economist Wang Tao, despite policymakers warning of a potential price. Shanghai house prices are over a third higher than September last year. Less restrictive government regulations and easier access to credit have contributed to the increase in house buying and China’s economic growth remaining steady at 6.7% in the first nine months of 2016. However, as we have been noting, 18 to 20 cities announced cooling measures this month including increasing the down payment ratios required on second homes.
China has seen a surge in property purchase plans due to concerns that house prices will rise further, according to UBS China economist Wang Tao, despite policymakers warning of a potential price. Shanghai house prices are over a third higher than September last year. Less restrictive government regulations and easier access to credit have contributed to the increase in house buying and China’s economic growth remaining steady at 6.7% in the first nine months of 2016. However, as we have been noting, 15 cities announced cooling measures this month including increasing the down payment ratios required on second homes.