For years there has been nothing but pervasive gloom hanging over China’s housing sector.
From Tianjin to Shenzhen, cities have been swamped with a glut of housing units no one wanted to buy, especially after the government imposed measures to cool the overheating market between 2005 and 2013.
China’s slowing economic growth has exacerbated the problem and heavily indebted developers still have two to five years of inventory to sell off particularly in tier-3 and tier-4 cities.
But now the sector is showing signs of renewed vigor. In the first eight months of this year, nationwide housing sales, measured by floor space, jumped 8%,...