MARKET OUTLOOK - Housing Sales in China Improved Slightly in November, Yet No Indication of Real Estate Sector Recovery

Foreks - Daiwa Analyst William Wu believes that the new housing sales data from China showed some improvement in November, but this will not lead to a recovery in the real estate sector. In a note, Wu highlighted that both the sales value and volume increased year-on-year in November, indicating early growth for 2024. He noted that the improvement is likely due to supportive policies, stronger sentiment, and year-end promotions. However, the analyst stated, "Still, slower new project starts and investments indicate that skepticism persists among developers." Wu expressed that Daiwa does not view the November figures as a signal of recovery for the real estate sector.