[ET Net News Agency, 11 January 2018] HSBC Global Research held an investor luncheon in
Hong Kong with the Chairman (Mainland China) of Centaline Property Agency to discuss the
outlook for China's residential property market in 2018.
Centaline expects a generally stable property market in 2018.
By city tier, Centaline expects tier-1 cities to experience resilient average selling
prices (ASPs) with volume recovery. Top tier-2 cities under strict policy control could
see ASPs remaining under pressure, while other tier-2 cities across Central & Western and
Northeast China are expected to perform well.
Meanwhile, lower tier cities will likely continue to benefit from the government's
shantytown redevelopment efforts (2018 target of 5.8m units).
In addition, Centaline holds a positive view on satellite cities, expecting solid sales
momentum. In line with HSBC's view, Centaline highlighted that city selection will hold
the key to success for developers in 2018, and the agency prefers cities within the
Greater Bay Area (GBA) as a key battlefield for developers aiming for growth.
On the policy front, Centaline expects no changes in the government's current policy
stance. (KL)