China’s residential property looks stable

The outlook for China's residential property market in 2017 is stable, Moody's Investors Service said in a report.

A sharp decline in home prices is "unlikely" in the next six to 12 months, given relative low inventory levels in first- and second-tier cities, the report said.

In fact, home prices are projected to rise modestly in 2017 against an already high base, said Kaven Tsang, a Moody's vice president and senior credit officer.

In 2016, total sales value will have risen 25 percent by the end of the year from a year earlier, due to a fierce price rally mainly propped up by China's bigger cities, Tsang said.