Is the Chinese real estate market recovering? For real?9 October, 2012, 13:02. Posted by Zarathustra
This is part 1 of 3 in the series Is the Chinese real estate market recovering? For real?
Standard Chartered put out a note last week, suggesting that the Chinese “residential housing sector is coming back”.
Their view is based on the fact that sales volume growth has been back in positive territory on a year-on-year basis, and growth in floor area under construction is bouncing back. The other observation is that new home inventory is declining from the peak to a seemingly normal level, and developers are now more active in bidding land.
Of course, the note was out before they got the taste of a sluggish golden week sales, so perhaps they might not have said that if the report is dated after the holiday. But anyway:
Source: Standard Chartered
But can we conclude that this recovery is for real simply from these little facts?
- Is the Chinese real estate market recovering? For real?
- What “oversupply” actually means for China’s real estate
- The unsustainable rise of China’s property prices