The Chinese property market has stalled and is one reason that economic growth in the world’s most populous country has slowed. However, some analysts believe that the government is making good policy changes and the market will start to recover in 2009.
The World Bank has lowered its 2009 growth forecast for China because of a depressed real estate market and slowing exports. Property prices have fallen as much as 40 percent in some markets and nationally the rate of growth has slowed to 1.6 percent.
The Chinese government has announced a $586 billion program to help the economy get back on track. They have also cut taxes and mortgage rates to help boost real estate investment. The China Real Estate Chamber of Commerce indicated that it expected growth in property investment would continue to slow in the fourth quarter of 2008. It also sees a rise in vacancy rates as new projects that are nearing completion come on line in the coming months.
With the government programs in place, though, many expect the property market to rebound as the economy regains speed in China.
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