Bank of America Merrill Lynch says China property on the mend and has bottomed out
China’s residential market will see a recovery with sales volume nationwide seen rising five per cent this year, Bank of America Merrill Lynch said on Wednesday.
"Sales volume improved in May. If the June figures remain positive, we can confirm that the market has bottomed out since April last year," said Raymond Ngai, head of Greater China Property Research at Bank of America Merrill Lynch. "Both sales and volume will rise in the second half."
The recovery of the mainland Chinese housing market has been supported by Beijing’s stimulus measures on easier monetary policies and a relaxation in administrative measures. Housing inventories in second and third tier Chinese cities are expected to fall in the second half of 2015 with supplies of new houses coming in at a lower level.
"We expect the residential market to recover five per cent rise in nationwide sales volume to 1.1 billion square metres," said Ngai.
Prices nationwide will be flat at 10,542 yuan per sq meter, compared to a three per cent drop in 2014.