Bloomberg news staff Bonnie Cao reports on the central government interest rate cut and the immediate effects on the real estate market:
“All financial institutions must continue to strictly implement a differentiated housing credit policy to continue curbing property buying for spec
ulation and investment purposes,” the central bank said in its interest-rate statement yesterday.
Jinsong Du, a Hong Kong-based property panalyst at Credit Suisse Group AG, in a note to clients yesterday wrote investors or speculators will increasingly re-enter the housing market, pushing up housing prices “meaningfully in the next few months.”
[…]
“The momentum of the property market had already picked up as developers reported good June sales,” said Nicole Wong, a Hong Kong-based property analyst at CLSA Asia-Pacific Markets. “The second round of interest rates cut will just drive the momentum better and better.”
Read more about China's real estate market and interest rates via CDT.
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