China Home Prices to Fall From This Month, BNP Says
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China’s home prices will decline from this month as the government maintains its lending curbs and increases the supply of public housing, forcing property developers to cut prices to boost sales, BNP Paribas said.
“Although the government has not quantified its target, it has indicated that it wants to see a housing-price correction take place in order to meet or partly meet public expectations,” Chen Xingdong and Isaac Meng, Beijing-based analysts at BNP Paribas, said in a report today, without giving a forecast for how much prices may drop. “We expect a housing price correction to take place from September onwards.”