Most Chinese remain unwilling to buy homes: Morgan Stanley
CHINESE households remain cautious over the housing outlook despite Beijing’s slew of property easing measures, according to Morgan Stanley. More than 80 per cent of surveyed households remain unwilling to enter the market or unsure about doing so when asked about their property purchase plans, Morgan Stanley said in a research note on Tuesday (Oct 10), citing a recent poll of around 2,000 consumers. Among the respondents, 42 per cent expect lower home prices over the next 12 months, compared with 23 per cent that anticipate an increase, the bank added. Chinese authorities have rolled out easing measures such as lower mortgage down payments and interest rates in recent months, to end a housing slump that is dragged on economic growth and exacerbated a debt crisis among developers. On the brighter side, homeowners are “incrementally more willing” to put extra funds from lower mortgage payments towards consumption and investment than they were in a July survey, Morgan Stanley said.
Spending intentions among consumers saw a minor sequential pickup, although sentiment remained lukewarm amid weak income expectations, the survey found. The latest survey was conducted between Sep 25 to Sep 28 across China’s Tier 1 to Tier 4 cities. BLOOMBERG
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