In sharp contrast to the West, Chinese officials will encourage a cooling of property prices.
According to the Bank Credit Analyst, a Canadian research firm, property loans now account for 53% of banks' total lending, up from 30% two decades ago.The American economy's addiction to housing leaves it exposed not only to a cooling of property prices, but also to long-term costs.
Another bright spot for the private sector: The cooling of commodity prices will give profit margins room to expand, Chan says.
Increasing supplies of new real estate projects and government policies aimed at cooling off prices are taking some of the wind out of the industry.
NEW DELHI, Nov. 7 — As oil approaches the $100-a-barrel milestone, M. S. Srinivasan, India's petroleum secretary, has an unorthodox recommendation for cooling overheated prices: halt trading of crude oil on commodity exchanges.
The market for prime mortgages (those extended to higher-quality borrowers) is faring better, though it, too, is showing signs of weakness, exacerbated by cooling house prices.
A cooling in prices at this end of the market will allow more locals to upgrade to fancy or new flats, he thinks, thereby releasing small flats for first-time buyers.That is not the same as pricking a bubble.
That faster deceleration than expected in imports is the reason the trade surplus widened and points to an accelerating cooling of domestic demand, though falling commodity prices would also have contributed to the value of imports.
The number of approvals fell throughout most of 2014, cooling house price growth and easing concerns about a bubble in the housing market.
