China’s housing market will “gain the most” from the government’s decision to cut interest rates for the first time since 2008, Centaline Property Agency Ltd. said in a report today.
“The rate cut does not mean the government is trying to save the housing market, but the housing market will definitely gain the most from the move,” the property broker said. “The hardest time for property developers is over.”
More buyers may also enter the market as a result of the central bank’s announcement that benchmark lending and deposit rates will be reduced by 0.25 percentage points from tomorrow, Centaline said. The rate cut may be seen by potential buyers as a “turn around in policy and the wait-and-see attitude will fizzle away,” the agency said.