Property Sales Surge During Chinese National Day Holiday: Analysts Warn of Premature Recovery
As the Chinese property market continues to struggle, the recent National Day holiday saw a significant increase in property sales in some cities. This surge came after policymakers announced a cut in mortgage rates to support the market, but analysts are cautious about calling it a solid recovery just yet.
During the holiday period, house visits and home sales increased in many cities, signaling a growing willingness to buy homes. More than 50 cities implemented policies to boost the real estate market, with thousands of developments participating in promotions.
Cities like Shenzhen and Shanghai saw notable improvements in sentiment, with significant jumps in both new and existing home sales. However, experts warn that the momentum may not be sustainable and further stimulus could be necessary.
While the positive sales trends during the holiday are encouraging, it remains to be seen if the market will continue to improve in the long term. Analysts predict that China may need significant funding to address the excess supply of homes in major cities, and a sizable fiscal package may be announced soon.
In conclusion, while the holiday sales data is promising, it's essential to monitor the market in the coming weeks to determine if the recovery is sustainable. Investors should remain cautious and stay informed about the latest developments in the Chinese property market to make informed decisions about their finances.