After policymakers increased support for the struggling sector, China’s home sales increased for a third consecutive month in April, adding to signs of a recovery.
According to preliminary statistics from China Real Estate Information Corp., the value of new home sales by the top 100 real estate developers increased 31.6% from a year earlier to 566.5 billion yuan (S$109.5 billion). Comparatively, March had a rise of 29.2%.
The improvement shows that government initiatives to help the real estate sector, a key sector of the second-largest economy in the world, are having a favorable impact. In addition to lowering mortgage rates and increasing financial support for developers, regulators have loosened purchasing restrictions in many major cities, including Shanghai.
A robust housing recovery is necessary for China’s economy to revive. As the real estate market reaches its bottom, economists are becoming more optimistic about China’s growth prospects. Several major banks have increased their 2023 projections to levels close to or even above 6%, well above the government’s target of about 5%.
According to Lu Ting, chief China economist at Nomura Holdings, the nation is currently gaining from the pandemic’s residual consumer demand. He continues to be circumspect about the chances for the second half, when he believes the sweet spot will have passed.
- Published By Team Hongkong Journalist