Property sales picked up in tier-1 cities after recent policy easing, but likely to be short-lived – UBS
DATA POLICY & REGULATION REAL ESTATE VIEWS & ANALYSIS
Property sales picked up in tier-1 cities after recent policy easing, but likely to be short-lived – UBS
DATA POLICY & REGULATION REAL ESTATE VIEWS & ANALYSIS

Property sales picked up in tier-1 cities after recent policy easing, but likely to be short-lived – UBS

 

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China’s financial regulators including the PBOC and the National Administration of Financial Regulation issued a national mortgage easing policy at the end of August, cutting the down-payment requirements for first- and second-time home buyers and lowered rates on existing mortgages. Read more …

After communicating with major real estate developers and agencies in China, USB found that the initial market response to the policy relaxations has been positive, with a strong rebound in property sales in tier-one cities, UBS said in a research note. 

The foot traffic of some property projects increased by 30% – 50% month on month, and the conversion has also improved, it said.

However, the rebound in real estate sales in first-tier cities is likely to be short-lived, expected to last for 4 – 5 weeks, and it will only help to unleash housing demand from upgraders, but won’t solve the issues of weak property price and income expectations, it said.