Improved housing mood seen continuing in China this year

Hong Kong

CHINA'S stronger-than-seasonal property sales in December point to a recovery in market sentiment thanks to looser housing and monetary policy, with the upbeat momentum expected to swing into 2015, analysts said.

But with oversupply still looming large, any recovery - especially in home prices - is likely to be slow, tempering hopes that housing could provide a badly needed boost to the Chinese economy as it struggles to overcome the slowest growth since the global financial crisis.