BofA Securities has expressed a constructive outlook on China's property sector, although it believes the recovery momentum has shifted from policy stimulus to a slower, more self-sustaining process that may be uneven. The firm anticipates transaction volumes in April will be significantly higher than levels seen in the last quarter of last year and the first two months of this year, suggesting a prolonged recovery cycle rather than the rapid cooling experienced last year. Given improving supply-demand dynamics, including a decline in secondary housing listings, a sharp correction in home prices by 2026 is considered unlikely. Secondary home prices in Shanghai, Shenzhen, and Beijing are expected to stabilize in the second half of the year. Due to the uneven recovery, investors are likely to remain cautious in the near term. The firm prefers CHINA RES LAND (01109) because of the long-term growth potential of its investment properties. It is also positive on CHINA OVERSEAS (00688) and C&D INTL GROUP (01908), which stand to benefit from upgrade demand, citing better earnings visibility for the 2027 fiscal year. BofA Securities lowered the target price for C&D INTL GROUP from HK$18.6 to HK$17.2, maintaining a "Buy" rating. The target price for CHINA OVS PPT (02669) was reduced from HK$4.6 to HK$4.4, with an "Underperform" rating retained. The target price for ONEWO (02602) was cut from HK$20 to HK$19, maintaining a "Neutral" rating. The target price for POLY PPT SER (06049) was adjusted down from HK$37 to HK$36, with a "Neutral" rating maintained.