Nomura issued a research report pointing out that after a steady recovery in mainland real estate sales in October, there has been a continuous warming trend since November. In terms of new home sales, sales in the 30 major cities on the mainland have continued to recover year-on-year since November, and signs of sustained recovery in second-hand home sales are also evident in higher-tier cities. The bank believes this is a positive signal, as investors previously thought that the recovery in mainland real estate sales in October was mainly driven by pent-up demand from buyers, which may be difficult to sustain.

The bank expects that, given the favorable policy environment since the shift in real estate policies at the end of September, as well as active promotion by developers before the end of the year, it is estimated that the stimulation of buyer confidence will continue to support the recovery in mainland real estate sales at least until December. At the same time, the bank believes that the continued recovery of sales in first-tier cities and some second-tier cities is just an early sign of stability in the real estate market, as substantial stability in property prices has not yet been seen. It may still take a few more quarters to confirm a turnaround in property prices.

The bank believes that mainland real estate stocks may have a short-term price rebound opportunity and remains bullish on quality property intermediaries such as Ke Holdings (02423), with a 'buy' rating; as well as leading state-owned developers, such as China Resources Land (01109), with a 'buy' rating.