There
are downside risks for the China property market in the second quarter
because of the tightening measures that have been reintroduced to some
cities, a Chinese government researcher said.
The curbs in first-tier cities are limiting property sales’
growth, Zhang Changcai, deputy director general at the Information
Research Department of the State Council, said at a conference in
Beijing Saturday.
Chinese authorities are seeking to stimulate the economy
without fueling bubbles in the property market. Home sales in Shanghai,
China’s financial hub,
tumbled 60 percent in the week after the municipal government on
March 25 unveiled a package of curbs, including stricter approval
criteria for non-resident homebuyers and higher down-payment
requirements for second homes.
The second quarter will be a challenging period for
developers because of the tightening in Shanghai and Shenzhen, as well
as declining sales in second-tier markets, industry consultant E-House
Co-president Ding Zuyu said in Shanghai on Friday.
The Financial Society of Shenzhen Special Economic Zone, a
research unit under the local branch of the People’s Bank of China, last
month asked commercial banks in the city to strengthen risk-control
practices on household mortgage loans as property prices have soared,
according to a statement obtained by Bloomberg News.
While the foundation for economic recovery is “still not
solid,” it’s possible for China to achieve an annual growth rate higher
than 6.5 percent this year, Zhang said.
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