Investment in the mainland's property sector is likely to drop by 5 per cent because of the government's cooling-down measures, an economist said yesterday.

"The rise in investment in property will slow down from 20-22 per cent to 15-20 per cent. Urban renovation and infrastructure investment growth too will decline because of less capital raised from land leasing," BNP Paribas chief economist Chen Xingdong said.

The government's cooling-down measures will ultimately ease pressure on the appreciation of the yuan, he said.

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