Beijing has announced a range of measures to stabilise China's housing market, including dealing with unsold inventory through government purchases and boosting demand via lower mortgage downpayments.
A return to the 2016-2020 boom in housing activity is unlikely, while an extended L-shaped period of healing appears to be a plausible baseline scenario.
Improvement in homebuyers' confidence will be crucial in achieving a market bottom, particularly lower concerns about the financial health of developers and non-delivery risks for new homes.
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