China’s residential properties have seen strong demand, and there are three factors driving it, according to Deutsche Bank’s Linan Liu.
Data released Thursday by the National Bureau of Statistics showed that new home prices in May rose 4.9% from a year ago, compared to a 4.8% increase in April.
The average new home prices in 70 cities also rose 0.6% from April, the same growth that was seen in April from March.
Property investment has been “fairly strong,” while manufacturing and infrastructure investment have been below expectations, said Liu, head of Greater China macro strategy at the bank.
In the household sector, “there’s still fairly robust demand for properties, either for upgrade or…