China property sales volume seen to improve in 2H - Moody's

    Moody's Investors Service said that the national sales volume of China's residential property market will likely improve in 2H 2014.
  "An expected increase in mortgage availability, selective loosening of regulatory restrictions in certain cities, and a higher number of new project launches by developers will support the growth in sales volume in 2H 2014 over 1H 2014," said Franco Leung, a Moody's Vice President and Senior Analyst.
  Leung was speaking on the release of Moody's latest monthly China Property Focus.
  In 1H, the total contracted sales value for China's residential property market declined 9.2% year-on-year to RMB2.56 trillion - according to China's National Bureau of Statistics - versus RMB2.82 trillion for the same period last year.
  "On a 12-month trailing basis, the total contracted sales value grew at 4.4% year-on-year, the slowest pace since November 2012. We expect such contracted sales growth will continue to range between 0% and 5% year-on-year for the rest of this year," said Leung.
  Moody's notes that some cities have selectively loosened the regulatory guidelines on home purchase restrictions, or relaxed the implementation of these restrictions.
  In addition, Moody's expects that mortgage availability will improve in 2H 2014, while the mortgage approval and disbursement period will be shortened. These factors, in addition to a higher number of new project launches expected and an increased willingness by developers to provide price incentives, will likely support sales volume growth in 2H 2014.
  "We will likely see a higher level of differentiation among developers in China under the current tough operating environment," said Leung.