Optimism fuels property interest

An increased confidence in China's economy has fueled interest among Chinese households to buy properties, a survey by the Bank of Communications showed Monday.

The China Wealth Index stood at 131 in May, up from 128 in March, and indicated that the households have expressed higher optimism toward the economy and individual investment. A reading above 100 signals positive sentiment.

"Although China's economic growth has continued to slow in recent quarters, people are confident about the outlook and are waiting for various stimulus measures to take effect," said Lian Ping, BoCom's chief economist.

"With people's income growth stabilizing and property prices declining, there is renewed interest to buy properties," he added.

The component index of willingness to purchase real estate assets grew to 109 in May, up from March's 106 and January's 103, despite the government's reiteration that restrictive housing policies won't be eased in the economic downturn.

The government has unveiled supportive fiscal and monetary measures to bolster the economy amid a slowdown.

The index, a gauge compiled every two months by BoCom's economic research center and US-based Nielson, a global marketing and advertising research company, interviewed 1,982 households in major cities.

The Chinese have also shown more interest in investing in non-fixed assets such as stocks, bonds, wealth management products, art collections and gold, with the related index rising to 128 in May from 126 in March.

"People's confidence comes from their growing wealth and their belief in the (government's) supportive policies," Lian said.