As China’s bear housing market enters its fifth year, a growing number of global investment bank analysts and property agents are increasingly optimistic on the sector, underscoring a positive view on its outlook fuelled by upbeat data in April.
Bank of America holds a positive stance on the sector and believes the “green shoots” of a recovery are visible, it said in a report issued in late April. After five consecutive years of weakness, the bank said “market recovery sustainability is becoming more evident”, adding that it expected the rebound to be over the long term.
“This stabilisation reflects a combination of factors, including stable rental trends in Shanghai, Shenzhen and other cities with strong industrial and AI-related development,” said Karl Choi, head of Greater China real estate research at Bank of America.
Choi said positive factors included better affordability following price declines of over 30 per cent since 2021, and an easing of selling pressure as secondary-market listings retreated from peak levels.
“We are also beginning to see transaction momentum gradually transmit from the secondary to the primary market, particularly in entry-level and first-upgrade new launches,” he added.
A property agent based in Beijing’s Xicheng financial district said inquiries and on-site viewings from potential homebuyers had picked up recently. Buyers were taking a rational approach to purchases given the lengthy decision-making and transaction process, the agent said.