Property developer Cifi expects a property market upturn in second half of the year

minutes 2019/03/15 03:25:00
China's News, China's Financial News,Cifi

Mar 15, 2019 (China Knowledge) - Shanghai-based property developer Cifi Holdings is expecting home sales to pick up in the second half of this year as local governments roll back on property control measures that have kept home prices low.

Despite the property market kicking off to a slow start this year, Cifi expects more opportunities to arise in the second half of the year. The company forecasts housing sales to reach RMB 190 billion this year, increasing by 25% year-on-year.

With China experiencing a wider economic slowdown, many cities are now looking towards boosting the property market to drive economic growth with some cities such as Guangzhou and Heze already loosening property market curbs last year.

The current situation in China is a reversal from 2016 when the Chinese government was looking to clamp down on a runaway property market due to fears of a growing property bubble.

Last year, Cifi bought 93 land parcels with a combined area of 12.4 million square meters which may generate up to RMB 220 billion in sales when fully developed. The company will continue to add to its land bank this year in second-tier cities where growth is expected to be the fastest.

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