China property market shows little signs of revival despite stimulus

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HONG KONG/BEIJING : China's troubled property market is showing little signs of a recovery in the short term despite a series of government stimulus measures to help revive activity in the sector which makes up a quarter of the nation's economic output.

Homebuyers, wary of the uncertain economic outlook, have remained on the sidelines, while property developers and agents said sales were still soft following a short-lived burst of activity in major cities like Beijing and Shenzhen.

China has quickened the pace of policy stimulus in recent weeks amid a deepening debt crisis in the sector, highlighted by the severe liquidity troubles in China Evergrande Group and Country Garden. Much of the easing policies have lowered the buying costs, but done little to create new demand, realtor Centaline China CEO Andy Lee said.

An official at a developer who has projects in major cities said its sales during the Golden Week was 20 per cent lower than a year ago, though better than September. The person, who declined to be named because he was not authorized to speak to media, added that sales have dropped again after the holiday ended.

 

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