Reason to be sceptical about China's rebound in residential investment

Beijing

AT FIRST glance, it makes perfect sense: Chinese property sales surged in March, and new housing developments rose in tandem with resale activity.

But a peek under the hood from Macquarie Capital Ltd analysts led by Ian Roper suggests there's reason to be sceptical about China's presumptive rebound in residential investment.

In March, national total floor space sold and the floor space of houses newly started rose 38 and 27 per cent year-over-year, respectively. But the analyst…