Moody's sees stable property market, but challenges ahead

A stable outlook is expected in the Chinese mainland property market in the coming 6 to 12 months but going forward developers face a challenging operating environment, Moody's Investors Service said in a report.

Moody's said the challenging operating environment is manifesting itself nationally in a slight drop in home sales values, tighter regulatory measures, rising home inventory levels and a gradual tightening of market liquidity.

"The stable outlook reflects our expectation that national residential property sales will slow but will remain within our parameters," said Franco Leung Chun-bong, vice-president and senior credit officer at Moody's.