Feb. 2 (Bloomberg) -- China’s real-estate companies should take advantage of demand for property bonds in 2012 by selling dollar-denominated notes, according to Bank of America Corp.

Evergrande Real Estate Group Ltd., Country Garden Holdings Co., and Agile Property Holdings Ltd. should use a recent rally to issue bonds and refinance debt due in the three years from 2014, Alwyn Pang, a research analyst at Bank of America Merrill Lynch, said in a note to clients yesterday. China corporate bonds outperformed the rest of Asia in 2012, and returned 5.4 percent, according to JPMorgan Chase & Co’s Asia Credit Index.

“Given the strength of the rally, the possibility of new supply has changed from remote to genuine,” said Pang, who is based in Hong Kong. “Given the heavy offshore bond redemption schedule in the sector beginning from the first half of 2014, we believe new supply from existing larger Chinese property developers is becoming a possibility.”

Chinese corporate bonds rallied this year as fourth-quarter economic growth and manufacturing last month exceeded expectations. Companies in the world’s second-largest economy sold $12 billion of notes in 2011, triple the $3.95 billion in 2010, according to data compiled by Bloomberg.

About $12.7 billion of debt, including convertible and synthetic bonds, will mature from 2014 to the end of 2016, according to Bank of America.