UBS analysts who rarely gave China Evergrande a “sell” rating switched to singing the Chinese property market
Since March of this year, the Shanghai luxury property market has attracted much attention. A number of popular projects sold out on the same day. The total sales volume of the four luxury property projects with unit prices exceeding 160,000 yuan within a month has reached 44.761 billion yuan. In addition, the much-publicized Maoming Mansion has also begun subscription. The subscription period is from April 24 to April 28. According to project information, a total of 75 apartments will be launched this time and will be on sale on May 16.
Recently, Shenzhen, Guangdong launched a housing “trade-in” project through an intermediary cooperation model.
An intermediary said, “We sold 7 sets in 2 days on Saturday and Sunday, all using the 'trade-in' channel.”
According to information, at present, the first batch of 21 intermediaries and 13 real estate projects have participated in this “trade-in” campaign. Currently, “trade-in” activities are mainly focused on commercial housing, and other property rights such as apartments have not yet been included.
According to brokerage China, foreign giants are suddenly rarely booming over the Chinese real estate market, which has attracted attention.
John LaMJ, an analyst in charge of real estate research at UBS Greater China, said in a recent interview: “After three years of bearishness, we are more optimistic about the Chinese real estate industry for the first time due to government aid.” He anticipates that domestic housing demand and supply will return to historical averages sometime next year, and the stocks of major Chinese real estate developers may rebound.
It is worth mentioning that John Lam gave China Evergrande Group a rare “sell” rating in early 2021 and lowered the target price from HK$14.5 to HK$6. He was the only analyst to give Evergrande a sales rating, shocking the market.
Standing now, John Lam believes that after undergoing adjustments, China's real estate industry is preparing for a slow recovery.
Benett Theseira, Asia Pacific director of Prudential Real Estate, pointed out that a sharp rise in global interest rates in the second half of 2022 triggered a major reset in real estate values, which had different effects on investors and lenders. However, as interest rates peaked and inflation began to cool down, the market finally ushered in a turning point. The Asia-Pacific real estate market is expected to enter a recovery path in 2024, mainly supported by stable capital values and return on earnings.
Real estate-related companies:
Longhu Group (00960), Ocean Group (03377), Vanke Enterprise (02202), C&D International Group (01908), Yuexiu Real Estate (00123), China Resources Land (01109), etc.;
Property management companies: China Resources Vientiane Life (01209), Poly Real Estate (06049), Midea Real Estate (03990), etc.
Housing agency: Seashell-W (02423), Country Garden Service (06098)