China's real estate market is on track to continue softening in the second half if the government doesn't intercede with stimulus measures. Falling home prices and skittering demand for property will negatively impact many of China's largest enterprises, including steel makers and oil producers, with predictable results for the country's overall economy. Several local governments have amended or erased earlier market control policies, although so far the effects of such steps have been limited. Housing sales in the second half will hinge on financial policies geared toward easing credit conditions for developers and home buyers alike. Many of the country's home builders are seeing their cash flows dry thanks to waning turnover and downward price pressure, factors which have naturally dampened their willingness to start new projects. Meanwhile, slowly rising incomes have yet to unleash the "rigid demand" of ordinary home buyers. Without mortgage support, many families and individuals will struggle to afford a house of their own. Related News
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