China’s continued economic slowdown is reshaping the country’s real estate market, as investor confidence remains high.

Tax cuts, increased infrastructure spending and demand from foreign investors will support China’s real estate market in 2019 in the wake of slower economic growth.

China’s economy grew 6.4 percent during the last three months of 2018, the slowest pace since the global financial crisis.

The property market accounts a meaningful proportion of China’s GDP growth and Beijing has, in the past, deployed stimulus measures to support the market.

But the government’s on-going effort to deleverage the nation’s financial system has prompted a new approach.

“Real estate plays a very important role and has a direct and indirect impact on China’s GDP,”

Daniel Yao, head of research, JLL China.

To keep property prices under control, the central bank is pumping more liquidity into the economy to boost consumer confidence and the government is pushing banks to increase lending while making widespread corporate and income tax cuts.

Read the rest of What slower GDP growth means for China’s real estate market on Thailand Business News

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