Singapore, 22 April 2026 – China’s long-struggling property sector may be approaching a turning point, a shift that could lift the country’s equity markets and drive outperformance against other emerging markets, according to JPMorgan Chase & Co..
Strategists at the bank highlighted early signs of stabilisation in China’s housing market, suggesting that years of correction may be nearing an inflection point, with potential positive spillovers into broader financial markets.
Early Signs of Property Market Stabilisation
Recent data indicates that declines in China’s new-home prices are moderating, marking the slowest pace of contraction in about a year.
At the same time, prices of existing homes have begun to rise in multiple cities, signalling improving demand conditions and a potential bottoming-out of the market.
Strategists noted that the rebound in Hong Kong’s real estate sector is also beginning to spill over into mainland China, particularly in major urban centres, reinforcing expectations of a broader recovery.
Wealth Effect and Affordability Support Recovery
One of the key drivers behind the improving outlook is the so-called “wealth effect.”
As Chinese equity markets recover, rising asset values are expected to boost household confidence and spending power, indirectly supporting housing demand.
In addition, property affordability has improved significantly, with price-to-income ratios now at their most attractive levels since 2016, further encouraging potential buyers to re-enter the market.
Equity Markets Positioned for Outperformance
JPMorgan expects that a stabilising property sector could become a key catalyst for China’s equity markets.
Despite a recent rebound, Chinese stocks remain relatively underperforming compared to broader emerging markets, suggesting room for catch-up if the property recovery gains traction.
The bank’s strategists maintain a constructive outlook, anticipating that improving sentiment around real estate could support a re-rating of Chinese equities in the months ahead.
The Ledger Asia Insights
China’s property sector has long been a structural pillar of its economy, and its stabilisation carries significant implications for regional and global markets.
For Asian investors, three key takeaways emerge:
1. Property Recovery as Market Catalyst
A turning point in real estate could unlock broader gains across China’s equity markets.
2. Valuation Catch-Up Opportunity
Chinese stocks remain relatively undervalued versus emerging market peers, offering potential upside if sentiment improves.
3. Spillover Effects Across Asia
A recovery in China’s property sector could support regional trade, commodities demand, and investor confidence across Asia.
The narrative around China is shifting, from prolonged correction to early-stage recovery. If sustained, this turning point may not only revive the property market, but also reshape the trajectory of Asian equities.
