Property price to fall moderately in '11: Report

13:24, November 26, 2010      

Email | Print | Subscribe | Comments | Forum 

China will intensify its property tightening drive in 2011, pushing house prices down moderately, China Minsheng Banking Corp said on Thursday.

Curbs rolled out so far, including higher down payments and mortgage rates, have failed to shake stubbornly high home prices, according to a report by the bank's specialist property team.

"Regulators may continue to check how policies on loans to home buyers and developers are being implemented and seriously punish violators in a timely manner," it said. "It is highly likely that property prices will see a correction in 2011."

Meanwhile, as home buyers retreat to the sidelines, developers are suffering from rising inventories, tighter cash flow and higher debt ratios, according to the report.

The bank's sample of 73 Chinese property firms listed in Shanghai and Hong Kong showed their net liability ratio reached a five-year high of 43 percent at the end of June; their ratio of cash to debts due this year fell to 1.6 from 2.2 at the end of 2009. The report did not provide more recent data.

The mid-sized lender expects China to raise interest rates by 50-90 basis points in 2011 and to cut its lending target to 6-7 trillion yuan from 7.5 trillion yuan this year. Loan growth to the property sector will slow accordingly, Minsheng said.

Source: China Daily/Agencies


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion