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China real estate affected by interest rate reduction

According to a recent survey conducted by CBRE, China lowering interest rate to save its stock market will have certain influences on the country's real estate market. Office market in Level-1 cities has operated efficiently in H1-2015 thanks to stable demands, while the market in Level-2 cities faced challenges due to oversupply, which may continue to be gloomy if the country's economic growth slows down. The retail property market is also affected negatively by factors like the competition from online retail, abundant supply of retail floor and the changes in retail rental change. About investors, CBRE believed investment capital will focus on Level-1 cities where supply-demand is balanced.