The question is, will they use them? Goldman has more.
In the current downturn, we have seen a series of property policy easing measures, including conventional demand-side stimulus (e.g. removal of home purchase restrictions, mortgage rate cut, home purchase subsidy) across different city tiers nationwide. However, we still see lackluster new home sales, land market sentiment and property price outlook (more details in our weekly, bi-weekly and monthly trackers).
More importantly, the secondary market has continued to weaken with rising supply and inventory and softening prices in the latest monthly data suggesting overall market contraction could accelerate further. Investors also seem less confident and are querying what else the government can do to stabilize the market. In our view, it’s not a question of “ability” but “willingness” – the government does have further measures at its disposal but these may conflict with its policy objectives.
