Below is the report on the China property market and Moody’s Analytics viewpoints:New-home prices were up 3.5% in August from a year earlier, the smallest growth since the property market rebounded from the pandemic fallout in June 2020. Property sales contracted in July and August with floor space sold logging an 18% year-over-year decline in August. They strengthened restrictions on bank lending to the real estate sector, prompting some banks to raise mortgage rates. As property sales ebb, the financing pressure on developers has begun to mount, leaving many in a liquidity crunch amid dented property sales, restrained borrowing, and elevated financing costs. Though banks’ direct risk exposure to property developers is under control, the knock-on effects of a teetering property sector on homebuyers and contractors are potentially serious.

Source: The Star September 28, 2021 05:37 UTC