Chinas property sector is showing tiny signs of recovery‚ according to recent data from the National Bureau of Statistics (NBS). Investment in property dropped by 101% in the first nine months of 2024 compared to the same period last year a small improvement from the 102% decline seen in the January-August period
Property sales measured by floor area fell by 171% year-on-year in January-September‚ which is slightly better than the 18% slump recorded in the first eight months. New construction starts (measured by floor area) saw a 222% decrease compared to last year‚ an improvement from the 225% drop in the January-August period
The funds raised by Chinese property developers decreased by 20% year-on-year‚ a marginal improvement from the 202% fall seen in the first eight months of 2024
In an effort to support the struggling property sector the government has recently introduced several measures. These include:
- Instructing banks to lower mortgage rates for existing home loans
- Further easing home-buying restrictions in major cities
These steps are aimed at revitalizing the property market and boosting economic growth in the worlds second-largest economy
The property sector is showing signs of stabilization‚ but challenges remain
While the improvements are small they suggest that the governments efforts to stabilize the property market may be starting to have an effect. However‚ the sector continues to face significant headwinds and its recovery remains a key concern for Chinas overall economic health