China’s house sector to slow

THE CHINESE property market was downgraded by credit ratings agency Moody’s yesterday, with the group now expecting a “significant slowdown”.

The group cut their view of the sector from stable to negative. While Moody’s still expect some growth in property sales, of up to five per cent, the expansion is a major drop from the 26.6 per cent boost recorded during 2013.

The Chinese central bank has attempted to tighten conditions and slow credit growth. But the agency suggests bigger developers will be able to transition into the slower environment.

“We expect sales growth for many of our rated developers will outperform the nationwide average in 2014, thanks to their good project locations, strong branding and sales execution ability,” said Moody’s analyst Franco Leung.