UBS Analyst Reverses Stance, Predicts Prolonged Slump for China's Property Market

John Lam, the head of China property research at UBS, has reversed his previous optimistic outlook for the sector. He now predicts a deeper and longer downturn, aligning with the more cautious views of his peers. Lam forecasts that home prices in mainland China will continue falling for at least two more years. He sees no immediate recovery for the country's troubled residential property market. A key reason for this extended slump is a shift in buyer behavior. Lam notes that many potential buyers are now choosing to rent instead of purchase homes. This trend is prolonging the market's decline, now in its fourth year.