VOT Research Desk
According to Yicai.com, which cited research by China Real Estate Information Corporation, the housing market in China may reach its bottom by the second quarter of next year as purchasers return to the market as their trust has been restored as a result of recent assistance for the industry.
Recent initiatives to improve developers’ access to funding will reduce their default risks and counteract the pessimistic industry predictions. If the policy intensity can be sustained or reinforced into the following year, the market may recover in Q2.
However, it is still unclear how long the market will consolidate at the bottom once the low occurs.
A new low for a single month over the previous six months was reached in November for real estate sales by floor area in the major 30 cities, which also saw an increase in year-over-year sales.
