Commerzbank: China Housing Market in Structural Stagnation
Commerzbank analyst Dr. Henry Hao says China's housing market remains in structural stagnation five years after the Evergrande crisis, with national prices following an L-shaped path and a K-shaped divergence between Tier-1 and lower-tier cities.
Commerzbank analyst Dr. Henry Hao argues that China's housing market is still in a state of structural stagnation, five years after the Evergrande crisis.
National property prices are following an L-shaped trajectory, indicating a prolonged flat period after an initial decline. Meanwhile, a K-shaped divergence is emerging, where Tier-1 cities outperform while lower-tier cities continue to weaken.
The report suggests that China's growth model shift will keep this stagnation in place for the foreseeable future.
Source: FXStreet Forex News