China’s home sales by top developers rise for third month

CHINA’S home sales rose for a third month in April, adding to signs of a recovery after policymakers expanded support for the beleaguered sector.  

The value of new home sales by the 100 biggest real estate developers climbed 31.6 per cent from a year earlier to 566.5 billion yuan (S$109.5 billion), preliminary data from China Real Estate Information Corp indicated. That compares with a 29.2 per cent increase in March. 

The improvement suggests that government measures to support the real estate industry, a crucial component of the world’s second-largest economy, are having a positive effect. Regulators have ramped up financial support for developers and lowered mortgage rates, while buying curbs have been eased in many big cities including Shanghai.

China’s economic recovery depends on a lasting rebound in housing. Economists are becoming more bullish about China’s growth outlook partly as the property market bottomed out, with several major banks raising their 2023 projections close to 6 per cent or higher, well above the government’s target of around 5 per cent.

For now, the country is benefiting from pent-up consumer demand after the pandemic, Nomura Holdings’ chief China economist Lu Ting said before the figures were released. He remains cautious on prospects for the second half, when he expects the sweet spot will be over.  BLOOMBERG