The outlook for China's property market is stable, but the operating environment will become more challenging and competition will intensify, according to a report released by Moody's Investors Service on Monday.
At the same time, inventory levels will stay low in high-tier cities and thereby support prices, while funding availability for the property sector will remain broadly stable, Franco Leung, Moody's vice president and senior credit officer, was quoted as saying in the report.
"We also expect the Chinese authorities to keep in place the tight regulatory measures designed to cool prices in higher-tier cities," he said.
Competition will intensify as many rated developers continue to target high sales growth in 2017 to capture additional market share. In general, their focus on first- and second-tier cities has also increased competition for land, pushing up prices and squeezing profit margins as price growth for residential properties slows in many cities.