China’s home sales to see marginal boost in Sept, but impact of policy easing should be assessed in Nov – Citi Research

 

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China’s real estate policy has shifted from protecting prices at the expense of transaction volume to allowing some price flexibility to revive transactions, Citi Research said in a note. 

A round of easing policies targeting tier-2 cities started in September and the easing pace has accelerated, but home sales have yet to rebound in the third week of this month as some buyers are waiting for further easing in the short term, it said

Citi expected a marginal sales boost in September, but it will have to wait until November to assess the impact of the policy, and a sustainable recovery in demand will depend on employment or income expectations, stable house prices and delivery issues, it said.

Among mainland property stocks, the broker’s top picks are China Resources Land, Yuexiu Property, Ke Holdings, Longfor Group and Greentown China.