Fitch: Move to Cut Down Payments in China Won't Alleviate Excess Housing Supply

April 2, 2015 12:50 AM

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(The following statement was released by the rating agency) HONG KONG, April 01 (Fitch) Fitch Ratings says today that the Chinese government's recent steps to lower down payment rates for second home purchases will not meaningfully stimulate demand, which has been muted because buyers are delaying purchases due to subdued expectations for price increases.

Home purchase restriction policies introduced at the start of 2012 and the sharp increase in supply from 2013 have successfully dampened investment demand for homes. In the resulting environment of falling prices or slowing price increases, investment-driven buyers have been generally delaying their...

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