Industry sources say banks in some of China's second- and third-tier cities have taken steps recently to tighten up the mortgage market.
China's real estate policies are likely to remain stringent in the coming five to 10 years, according to a research paper released on Friday by China Index Academy, a research body specializing in the real estate industry.
Curbing housing purchases for investment purchases will continue to be the policy's chief priority. That end will be pursued by restricting the number of houses that can be purchased and continuing to offer slightly reduced mortgage rates to first-time homebuyers in the short run, the report said.
Despite the tight real estate policies, the pace of urbanization and the gradual improvement in residents' incomes in China will still help the industry to develop soundly in the coming decade, it said.
Alastair Hughes, CEO of Jones Lang LaSalle Asia Pacific, said foreign institutional investors continue to seek investment opportunities in China.
"They care more about long-term prospects," Hughes said. "Therefore, short-term fluctuations in the market will not drive them away."
Goodman Group, an Australia-based developer that specializes in industrial real estate, announced on Wednesday that it started work on 260,000 square meters of new developments on the Chinese mainland during the third quarter.
"We continue to be confident of China's economic outlook as strong domestic consumption prevails, which is in turn a key driver of demand for prime logistics and warehouse space," said Philip Pearce, Goodman managing director for Greater China.
Contact the writer at huyuanyuan@chinadaily.com.cn
Landmark building should respect the public's feeling
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