Dim Sum Express

A-Share Market

    Property: Further restrictions on home purchases and developer financing

    While primary area sold in the 54 key cities tracked rose 23% YoY in 2016 to a new high level, monthly transaction growth weakened through the year with an 8% YoY drop recorded in Dec. Thanks to the high transaction volume during the year, residential property inventories in key cities are now at a historically low level of six months with some cities having an inventory depletion cycle of less than five months. Looking into 2017, we maintain our previous view that the domestic property market will be transitioning from one with declining volume and stable prices to one with declines in both volume and prices.