Six key areas to watch on China's economy 2017
Stabilizing property market
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Workers at a construction site in Yichang, Hubei province. [ZHOU JIANPING / CHINA DAILY] |
A key driver of fixed-asset investment, China's property sector will be closely watched in 2017 due to its impact on economic growth.
Following tougher home-buying rules to contain speculation and hold surging prices in check, property sales will grow at a slower pace next year, said Zhang. However, he predicts China's urbanization will support housing demand and keep market growth at a steady level.
In 2017, China's top legislature is expected to pass the long-discussed property tax law, which will increase the cost of speculation, said Zhang Shuyu, a macroeconomic expert with the University of International Business and Economics.
In addition, the government will likely continue differentiated property policies to address market divergence between top-tier cities and smaller ones.
