CASS: Prospect of housing price plunge low in 2010

Chinese Academy of Social Sciences (CASS) today released the "Blue Book for China's Real Estate 2010," predicting that the possibility for housing price decline is low in 2010, but the growth rate will slow down.

In 2009, China's property market witnessed an unexpected V-shape recovery, leading to the rapid growth of individual mortgage loans and sufficient cash flow for housing developers.

The unexpected rebound was the result of a recovering economic environment both at home and abroad and booming housing speculation stimulated by the favorable policies, according to the Blue Book.

The possibility for a nationwide housing price plunge is low in 2010, the Blue Book predicted. The main reason was that the market will be still in short supply. However, due to the expectations of policy adjustment, the growth rate of housing prices will slow compared to the 2009 growth of 23.6 percent.

"This year's housing policies should stick to regulation and control as well as stabilizing the market. The improvement of market mechanisms should also be focused upon," suggested the Blue Book.

By People's Daily Online