One of the key drivers of the economic turnaround this year, the property market,is starting to cool. Growth in the prices of new residential properties slumped inOctober in the largest (tier 1 and tier 2) cities, where local officials have put infresh restrictions on home purchases in recent months. But price growth edgeddown in smaller cities too. Home sales have also slowed sharply inrecent weeks. Looking ahead, with the property rally likely coming to an end,fiscal support diminishing and credit growth slowing, China’s economic reboundlooks set to fizzle out before long too.
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