Property investors have been urged to be patient and give Beijing’s support measures for its beleaguered property market “some time” to make an impact.
A state-run newspaper published the cautious note on Wednesday, as investors laid bets on new near-term stimulus being announced to revive the sector.
The commentary by the Economic Daily, which is backed by the cabinet, came as investors in property shares are torn between hopes that Beijing will roll out more supportive measures and disappointment that nothing has been unveiled since last week.
“We should show more patience and confidence in the stabilisation and recovery of the property market as well as its continued stable and healthy development,” the paper said.
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Supportive policies, from easing of curbs on home purchases, to reduction in financial pressure and greater financial support continue to be rolled out, it added, but warned, “It takes some time for the policies to take effect.”
Last year’s slump in the sector, until then a pillar of the world’s second-largest economy, saw developers default on debt or bonds and suspend construction of presold housing projects.
“At present, every effort should continue to be made to ensure delivery of pre-sold housing projects on time” the paper said, to help restore industry confidence.
Local governments have rolled out hundreds of measures since last year to lift demand. But market sentiment, initially buoyed by the scrapping of tough Covid-19 curbs in December, has proved to be short-lived.
The property market showed more obvious signs of recovery in the first quarter, but the trend did not continue in April and May, the paper said.
“The market focus has quickly shifted from whether to stimulate to how to stimulate amid the continued data weakness,” Citi said in a research note on Tuesday. “The coming two months will be a critical window to act.”
- Reuters with additional editing by Sean O’Meara
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