Mainland China’s secondary home prices in October saw a slight month-on-month increase, primarily benefiting from policy easing and seasonal factors, Morgan Stanley said in a research note.
A reduction in new property developments and recent positive sales growth could continue to support property prices in the fourth quarter, it said, though cautioned over sustainability as policy effects diminish.
With investor confidence recovering and industry valuations rebounding to historical averages, sustained sales figures will be key to maintaining strong performance and investors should consider dual beneficiaries of the property market and consumer sector, such as China Resources Land and China Resources Mixc Lifestyle.
It also recommended state-owned developers, including Greentown China, China Overseas Land & Investment, and Yuexiu Property, as they may outperform the market due to potential strong sales.