MARKET OUTLOOK - China's Housing Sales May Continue to Decline in 2025

Citi analysts predict that China's real estate sector is likely to underperform in 2025 due to a policy vacuum leading up to the National People's Congress in March, along with other factors such as slow local policy implementation. The bank expects a 23% decline in sales for 35 listed Chinese real estate developers in 2025. Citi analysts note that China's policy support is heading in the right direction, but its implementation will take time. They indicate that the December home sales data for the 35 developers were stronger than expected, suggesting a second month of year-on-year growth in 2024.