MARKET OUTLOOK - China's Recovery in Housing Sales May Be Temporary

Nomura analysts argued that the lifting of restrictions on housing transactions may lead to a temporary increase in housing sales in China. According to an announcement from China's Ministry of Housing last week, the new residential sales volume in China increased year-on-year for the first time since June 2023, following a series of easing measures. However, it was noted that this effect could be temporary, as “homebuyers may continue to be concerned about the high risk of not receiving previously purchased homes on time.” Nomura does not expect any recovery in the real estate sector until the delivery of approximately 20 million delayed homes is resolved. Analysts believe that direct financial support from Beijing will be much more effective in resolving the real estate crisis.