A major pillar of China's economy has passed the 'tipping point' and could slow further, analyst says - Creak News

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A major pillar of China's economy has passed the 'tipping point' and could slow further, analyst says

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China housingChina Photos/Getty Images

  • China started a shanty town renovation program in 2015 in an effort to drive home sales in lower-tier cities, helping lift the country's property values over the past few years.
  • To calm the red-hot housing market, the central government applied a series of measures to punish speculators, such as setting higher down-payment ratios and mortgage restrictions.
  • The Chinese government has continued to tighten property controls amid a slowdown in the economy, and 2019 could be a year of softening housing data, an analyst said.

The year of 2019 could begin a broader slowdown in China's housing market, analysts say. 

China's property market, a major pillar of the economy, "has passed the tipping point," said Ric Deverell, an analyst at Macquarie Securities. "In coming quarters, we could see the self-strengthening circle between lower sales and falling prices."

See the rest of the story at Business Insider

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