Inside the Great Wall:Expert said tightening policies unlikely to be removed in 2H

NBS data shows property prices in 15 T1 and core T2 cities recorded y-ydecline in May, nine of which were ASP was seen to be flat or declined m-m.

    Liu Jianwei from NBS commented that the effects of tightening measurescontinue, especially in T1 and 2 cities. Yan Yuejin from E-House said that dueto support for inventory clearance, prices in T3 and 4 cities have beenincreasing and loosening in the form of control measures is unlikely. (CFI)Deutsche Bank’s comment: The expectation is in line with our checks withproject managers and developer managements. We agree that loosening of HPRis unlikely in the short term. Instead, we expect more liquidity tightening to beon the way. We continue to expect a 5% sales volume decline in 2017 and a 5%price drop in T1 and 2 cities.

    SHKP (0016.HK) has introduced the first batch of PARK YOHO Genova in YuenLong, comprising 138 units priced at a saleable ASP of HK$13,750 psf beforediscounts and HK$11,550 psf after discounts. The developer provides anumber of payment methods and tax rebates, and other concessions. LouisChan Wing-kit, Asia-Pacific CEO (residential) at Centaline Property Agency,commented that the ASP is close to secondary market prices in the nearbyarea. (Sing Tao)