China Property Market Shows Recovery Signs, BofA Lifts Developer TPs by 13%

Bank of America Securities has raised its price targets for major Chinese property developers by an average of 13 percent, citing an emerging recovery in the nation’s embattled real estate sector after residential sales grew 18 percent year-over-year in April.

"Although our previously non-consensus bullish view has gradually gained broader market recognition, overall investor positioning remains relatively light, with many still questioning the sustainability of the recovery," BofA Securities said in its report released May 11.

The bullish call comes as tier-one cities show increasing signs of stabilization, supporting the view that the worst may be over for the sector. The report highlighted top picks including China Resources Land (1109.HK), China Overseas Land & Investment (0688.HK), and C&D International Group (1908.HK).

The report may signal a turning point for a sector that has been a significant drag on the world’s second-largest economy, potentially boosting investor confidence and drawing capital back into undervalued Chinese equities if the recovery trend proves sustainable through the second half of 2026.

Price Targets Raised

In the report, BofA Securities lifted its target price for China Resources Land to HKD49 from HKD43 and raised China Overseas Land & Investment to HKD17 from HKD14.5. The target for C&D International Group was increased to HKD20 from HKD17.2, with all three developers maintaining a "Buy" rating. Yuexiu Property (0123.HK) also saw its target lifted to HKD5 from HKD4.6.

The bank is also positive on the property management sector, favoring China Resources Mixc Lifestyle Services (1209.HK) and Greentown Service Group (2869.HK) to benefit from the nascent recovery. The sustained improvement in sales and stabilization in major cities are seen as key prerequisites for a broader re-rating of the sector.

This article is for informational purposes only and does not constitute investment advice.