UOB Group economist Ho Woei Chen, CFA, reviews the latest measures to shore up the Chinese real estate sector.
China has announced further support measures for its property market, including relaxing the definition of first-home buyers, as well as cutting the down payment requirement and borrowing costs for new buyers and first-home mortgage holders already. existing.
This could help stabilize the outlook for the Chinese property market in the short term. However, a recovery in buyer sentiment will take time, given financing concerns among property developers, and the economic recovery over the next two years is expected to be weak, with risks arising from weak external demand and geopolitical tensions.
We reiterate our forecast for a drop in lending rates of another 10 basis points for the one-year long-term interest rate and 20 basis points for the five-year long-term interest rate by the end of the quarter quarter of 2023. We maintain our GDP growth forecast at 5.0% for 2023 and 4.5% for 2024.
Source: Fx Street
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