Asia Pacific’s real estate focused stocks outperformed in August, edging ahead of the wider market. This was led by the wider GPR/APREA Composite Listed Real Estate Index, which returned 5.8%, powered mainly by the Australian and Japanese markets. This more than offset the stall on China’s stocks, which remained largely flat after enjoying a strong rally up to July.
The property market has been a major driver in China’s economic recovery, with home sales and investment growing at a robust pace in recent months after coronavirus lockdowns were lifted. While home prices in the region’s largest economy, as tracked by the nation’s statistical body, eked out a 0.6% rise in August from a month earlier, sentiment was stalled by tightening measures aimed at promoting a sustainable market.
Chinese authorities took a step to rein in debt growth, issuing new guidelines on bond issuance, as a strong housing market recovery prompted caution. June’s home prices, which rose at their fastest pace in ten months, have already prompted fresh housing curbs.