China’s property market is likely to have seen the light at the end of the tunnel with most of the rated developers expected to meet their sales targets this year, Standard & Poor’s said.
The ratings agency forecast a 15 to 20 percent rise in mainland property sales this year, and a mild growth of up to 5 percent next year, the Hong Kong Economic Journal reported, citing deputy corporate ratings director Dennis Lee.
The country posted an 18 percent growth in property sales for the first 10 months as government measures supported price levels.
However, developers focused on third- and fourth-tier cities may face more pressure in sales, Lee said.
According to the ratings agency, 65 percent of rated developers saw decline in gross profits in the first half with 14 percent recording a fall of at least 10 percent.
This shows that the market’s golden period over the last decade has come to an end, with profitability constantly weakening, Lee said.
Standard & Poor’s holds a “stable” outlook for 66 percent of the rated developers, a “negative” view on another 32 percent and a “positive” view on the remaining 2 percent.
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