
Chart of the Day: Unsold inventory gradually falls in Q1
Falling rates, tapering supply and resilient demand to keep prices stable.
This chart from Jefferies shows that unsold inventory is gradually falling. However, the H2 confirmed supply of 1370 units is lowest in last decade.
Jefferies notes that the central bank has indicated no need to adjust the cooling measures as prices moderate gradually. Falling rates, tapering supply and resilient demand are likely to keep prices stable as business climate stays uncertain.
That said, risks from commercial real estate exposure may impact developers negatively. Recent debt issuances and asset level recaps need a close watch.