Property market will continue recovering in second half, says China
Property market will continue recovering in second half, says China

According to China's top economic planner, there are chances that the property market will continue to get better in the last six months of this year, which is good for an economy that is under pressure.

In recent months, there is an improvement in home sales and prices in main cities of China following a lot of government support measures, however conditions were different in smaller cities and a massive increase of unsold houses is adversely affecting new construction and investment.

According to the National Development and Reform Commission(NDRC), "In the second half, the recovery trend in the property market is likely to be sustained, which will create better situation for consumer prices and support factory-gate prices".

At the weekend, it was shown in the inflation and trade data that domestic demand continued to be slow in July. As per reports, annual consumer inflation was unchanged at 1.6% in the face of an increase in pork prices, corresponding to forecasts. It was somewhat higher than 1.4% in June.

The price data, as well as weak export numbers that have been released at the weekend, have strengthened expectations that Beijing will have to soon come up with fresh economic support measures if leaders look forward to meeting their 7% growth target for this year.

But the NDRC said that it expected that consumer prices will soon become stable and start improving in the second half of 2015. However, fall in producer prices was expected to ease to some extent as a result of increasing prices of agricultural products.

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