(ECNS) -- China's real estate market will face increased volatility in 2016, following rising prices among commercial properties last year, according to a report released on Thursday.
Drawn up by the Institute for Urban and Environmental Studies under the Chinese Academy of Social Sciences (CASS) and China Social Sciences Academy Press, it said transaction prices of commercial properties in 2015 rose in general, with sale prices of residential housing and office buildings retaining a higher rate while commercial business housing encountered a decline.
The number of unsold houses stood at a high level while investment into new real estate was sluggish. Residential investment recorded zero growth, the report said.
It predicts more market uncertainties in 2016 for reasons including the highly possible further slowing of China's economy.
Governmental policy is expected to ensure the real estate market is stable, retaining purchase limits in first and second-tier cities and introducing stimulus measures in cities with oversupply, the report added.
Proactive fiscal and looser monetary policies are intended to encourage developers to begin new investment in top cities with strong market demand, with prices to continue rising, although at a slowed pace.
The report also said the real estate sector may experience a full downturn in the second half of 2017 if the country's overall economic growth declines further.
