Japanese bank Nomura expects property market conditions to worsen significantly in 2019 before getting better, and it will likely take Beijing longer than usual to come to the rescue.

When will Beijing come to rescue, and how? The entrenched nature of certain non-market-based property policies – such as restrictions on home purchases, sales and prices – are key hurdles to making timely policy adjustments, writes Nomura in a note this Friday.

«But, since the property sector plays such a crucial role in China’s growth, we believe Beijing will eventually ease many of the tightening measures in large cities during or after spring 2019,» Nomura's analysts say.

Frigid Winter

In the bank's view, it is only after this that growth can rebound, and thus these views on the property sector are quite crucial to accurately timing the bottom of the ongoing growth slowdown. «Be prepared for a frigid winter,» concludes Nomura.