China’s housing inventories in 2019 are expected to rise to a level which could take up to 25 months to digest, as many provinces are trying to attract more people to settle down with a relaxation of household registrations, China Securities Journal reported.
A report published by Nomura Securities said housing inventories in China will rise to a 25-month high, but below the 30-month high in 2014.
Generally, 10-month housing stock is considered to be relatively healthy, said Chen Lei, chief analyst at Zhuge.com, a housing price comparison website.
The inventories in some cities will increase moderately as land sales climb, but it is unlikely for the inventories nationwide to rise dramatically to hit historical highs amid the backdrop of China’s ongoing de-stocking campaign, he said.
At present, the purchase limit in first- and second-tier cities is unlikely to relax. Many cities are trying to attract more people to settle down and boost demand for home purchases.
In 2019, there were more than 16 cities that announced various talent introduction and settlement policies, including housing hotspots such as Guangzhou and Haikou city.