Bank of China says property bust unlikely   

房地产市场不太可能硬着陆

(ECNS) – China's property market will continue its downward slope, but a hard landing is not likely, according to a Bank of China report.

The Economic and Financial Outlook Report for Q3 2014, released Tuesday, predicts China's housing prices to continue dropping, as government restrictions remain, and inventory is still high, money is still tight for developers and home buyers are reluctant to buy.

However, the BOC report says a dramatic price adjustment and property bust are very unlikely due to policy relaxations in many cities and a strong long-term demand for housing.

The report also points out that a slowdown in property investments won't impact GDP growth that much. Investments in the real estate market usually contribute 7.5 percent to China's GDP growth. Even if the growth rate of property investments falls to 15 percent, from 19.8 percent in 2013, GDP growth rate would be cut by only 0.33 percent.