China property market may need policy easing
China's housing market shows tentative recovery signals, but a sustained rebound hinges on continued policy easing, according to analysts. Second-hand home prices in first-tier cities rose 0.4% in March, with Beijing and Shanghai seeing increases of 0.6% and 0.4%, respectively.
China's housing market is showing signs of recovery, but analysts say continued policy easing is necessary for a sustained rebound. Second-hand home prices in first-tier cities, including Beijing and Shanghai, rose 0.4% in March. In Beijing, prices increased 0.6%, while Shanghai saw a 0.4% rise. Most transactions were concentrated in homes priced below three million yuan, indicating demand remains skewed toward first-time buyers. Analysts suggest further easing home purchase restrictions, lowering mortgage rates, and facilitating mortgage transfers to stimulate upgrade demand. They also emphasize the need to develop institution-led rental housing and lower thresholds for real estate investment trusts to support rental housing.
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