China’s property market sentiment rose as Hangzhou revealed plans to buy unsold inventory. Analysts are cautious about the effectiveness of such aid. Shares of CIFI Holdings and China Vanke surged on the news. The government is planning to acquire 10,000 square meters of property to boost sales.
However, nationwide unsold homes remain high at 330 million square meters, prompting Beijing to consider comprehensive measures to reduce inventory. Concerns arise about funding for the buying plan and restoring buyer confidence. Experts suggest providing funds for developers to ensure completion and delivery of unsold units.
China’s home sales continue to be sluggish with prices falling, despite previous stimulus measures. The contracted sales of top Chinese developers declined in April, highlighting the challenges in the market. Prices of new homes in medium to large cities have also seen a continuous decline.