Despite slumping prices and mounting inventories, Chinese developers are turning more optimistic on their business prospects for the coming months, according to a new survey.
Over 70 percent of developers polled expect home sales to rise in the first-half of 2015 – a significant improvement from the last time they were polled in May 2014, when 50 percent expected sales to decline in the second half of 2014.
The survey conducted by Barclays polled 14 developers during the second week of January.
"Developers generally anticipate a better mortgage environment with easy access to construction loans," Alvin Wong, analyst at Barclays wrote in note accompanying the survey.
"Although most developers have yet to set their full-year sales targets, most of them guide to 5-10 percent y/y sales growth in 2015 and put inventory clear-up as top priority," he said.