HSBC Global Research said the mainland property market has bottomed out, citing 10 signs such as year-on-year growth in new home sales and recovery in home prices.

It reiterated its buy rating on China Resources Land (1109), Longfor Group (0960), China Resources Mixc Lifestyle Services (1209) and KE (2423) at target prices of HK$32.50, HK$12, HK$38.80, and US$22.10 (HK$172.38), respectively.

The other recovery indicators are the reset of price expectations, land sales growth, foreign investment participation, continued home completions, developers’ easier access to credit, higher household risk appetite, gradual clearing of real estate inventory and rental yields becoming more attractive compared to 10-year government bond yields.

New home sales in the mainland have shrunk 48 percent from the peak in 2021 amid unprecedented industry consolidation, according to HSBC Global Research.