Expected real estate policy easing to benefit middle-tier cities more than top-tier, lower-tier cities – Fitch Ratings

 

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

 

 

China’s real estate policy easing proposed at the recent meeting of the Politburo of the CPC Central Committee may have more obvious effects on middle-tier cities than on top-tier and low-tier cities, Fitch Ratings said in a note.

The real estate supply and demand structure in middle-tier cities is more balanced than most low-tier cities due to the cities’ stronger economic strength and more favorable demographic conditions, it said.

The four top-tier cities, where demand tends to outstrip supply, may cautiously push forward with the relaxation to avoid a surge in home prices, it said.

For low-tier cities, the effectiveness will be weaker given their feebler economic strength and lower purchasing power of local buyers, and there is nearly no room for further easing of real estate policies in low tier cities, it added.