[ET Net News Agency, 12 December 2018] HSBC Global Research believes that imminent
policy relaxation for the China real estate sector is unlikely based on an assessment of
the policy environment examining three real estate-related factors.
First, the current state of the land market is far from a dire situation, with
transaction volumes maintained in the mid-teens YoY growth levels versus the single- to
double-digit declines in previous cycles that prompted loosening.
Second, property sales value (+13% YoY in 10-month 2018) and ASP growth (+9% in 10-month
2018) haven't yet retreated to a level that calls for relaxation, noting that relaxations
in past cycles came through when sales growth dipped to negative territory and ASP growth
momentum decelerated.
Third, stable trends of FAI growth and REI growth also show no urgency for relaxation,
said HSBC. (KL)