China’s home sales expected to grow 5% – 10% in H2, more policy to come to improve home affordability – research 
DATA REAL ESTATE VIEWS & ANALYSIS
China’s home sales expected to grow 5% – 10% in H2, more policy to come to improve home affordability – research 
DATA REAL ESTATE VIEWS & ANALYSIS

China’s home sales expected to grow 5% – 10% in H2, more policy to come to improve home affordability – research 

 

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Given the low base last year, the real estate market in mainland China will gradually recover in the second half of the year, with more policies to be introduced to improve home affordability, including reducing down payments and mortgage rates, analysts at BOCOM International said in a research note. 

As private developers launch more completed projects for sale, that will help alleviate homebuyers’ concerns, it said.

The bank expects mainland home sales to grow by 5% – 10% year over year in the second half of the year. 

Among the top 50 property developers, in terms of contracted sales, the market share of state-owned developers increased to 68.1% in the first five months of the year and is expected to peak at around 70% in the second half, while some private developers will regain market share as they launch more completed projects, according to the note. 

The bank prefers leading SOEs with strong sales execution and ample land bank, reiterating Yuexiu Property as the top pick with a Buy rating, while it also favors China Resources Land, with a Buy rating.