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As Chinese authorities introduced supportive policy for the demand side of the real estate market at a faster pace, a series of policy measures are gradually forming a synergy, Citic Securities said in a note.
The fundamentals of the real estate market are expected to start stabilizing from September due to the lowering of the threshold for home ownership and the decline in financial burden, it said.
The reversal of the expectation for home price declines will be the reason for the market recovery to sustain, it said.
The policy adjustments will unleash real housing demand, including the demand for selling old homes to buy new ones and selling small ones to buy big ones, home buying back in hometown cities, housing demand for retirement and sojourn, it said.
However, the policy does not encourage new demand for a second home in the same city, and prohibits speculation on hoarding a large amount of homes, it noted. Overall, the optimization of the policy better reflects the spirit of “housing is for living, not for speculation”, and the value of housing will further return to residential purposes, it said.