China housing market to slow over 2017

    China’s housing market is expected to cool over the rest of 2017 due to restrictions on home purchases, and tighter credit conditions, said Fitch Ratings in a report on Thursday.

    China’s economy is known to be dictated by the housing market – which Fitch says is likely to drive a slowdown in the months ahead.

    Macau’s VIP gaming performance is also known to have ties to this sector, with Nomura Holding analyst Richard Huang previously suggesting that the two markets are “strongly correlated”.

    According to the Fitch report, growth in new residential property sales decelerated to 24 percent year-on-year (on a trailing 12-month basis) in May 2017, down for the fifth straight month from the 36.2 percent peak in December 2016.

    “The downturn has been policy driven, with the authorities stepping in to prevent excessive froth in the market,” said the ratings agency.