Demand for real estate in China begins to recover
2022.12.19 01:49
Demand for real estate in China begins to recover
Budrigannews.com – Despite government support policies and the easing of pandemic curbs, new home sales in 16 Chinese cities increased at a slower rate last week, held back by falling transactions in the largest cities and rising COVID-19 cases.
According to China Index Academy, one of the largest independent real estate research firms in the nation, sales from December 11 to 17 in 16 specific Chinese cities were 1.4% higher than the previous seven days. For Dec. 4-10, week after week development was 4.9%.
In recent weeks, Chinese authorities have increased financing assistance for developers, providing some respite from a mid-2020 crackdown on excessive leverage that forced cash-strapped developers to default on debt obligations and halt construction. As a response, some homebuyers stopped making mortgage payments.
The industry’s sentiment has slightly improved as a result of stimulus measures, but the rate of recovery has slowed due to an increase in COVID-19 cases following the sudden relaxation of many pandemic control measures on December 7.
People stayed at home on Sunday to protect themselves from an increase in cases that has swept through major Chinese cities from north to south.
When compared to the previous week, home sales in tier-one cities like Beijing and Shanghai decreased by 13.6%. Weekly sales were down 29.4% in Beijing and 29.0% in Shanghai.
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Policymakers stated that they would increase consumption and property at an agenda-setting meeting that ended on Friday. Earlier this year, numerous measures with similar goals were implemented.
