China's housing at an important inflection phase

While it is heartening that China's real estate exhibited overall resilience in October, it is observed that the gulf between the coastal provinces and the hinterlands [in terms of price expectations] has opened up again. 

A steep decline in the Central & West (C&W) was the key driver, with responses from the East actually improving slightly. That divergence is a reminder of the greater demand-supply mismatch in less wealthy interior cities. 

It is also consistent with the fact that official data implies that the sales rebound seems to be stalling at a point where price gains are far from geographically universal. 

"China's housing is at an important inflection point and policymakers should be vigilant on this front. A polite request that more than 100% of Friday's rate cut be passed through to mortgages is an obvious expedient", says Westpac.