China Overseas sees China property improving in '09

HONG KONG Feb 6 (Reuters) - China Overseas Land (0688.HK), the largest local listed mainland property developer, said on Friday the China property market has bottomed out and expects the overall property environment to improve in 2009.

"The (China property) market had gone through a deep adjustment particularly in southern China last year and was already at its bottom," chairman Kong Qingping told reporters. "The environment this year will not be as bad as last year."

Kong said Beijing's measures to support the property market are likely to be effective but homebuyers are still tentative after the China property slide.

Brokerage CLSA and consultants Savills expect average home prices in Beijing and Shanghai to fall 20-25 percent this year, similar to declines in Shenzhen and Guangzhou in 2008.

Beijing concocted a policy mix that included encouraging banks to resume lending to developers as well as tax concessions and cheaper mortgages for home buyers as part of efforts to support the ailing property market amid the global slowdown.

China's economic growth slowed to 6.8 percent in the last quarter of 2008, dragging down the annual rate of expansion to a seven-year low of 9.0 percent. China targets annual growth of 8 percent or above in order to absorb waves of new job seekers.

"I'm confident in the (China) property market, especially if the 8 percent growth is achieved," Kong added but gave no further comment.

Shares of the property group, which fell 3.7 percent in January, gained 6.2 percent to HK$10.62 in late trade on Friday. (US$1=HK$7.8)