The housing market in China continues to fall
2023.01.16 01:17
The housing market in China continues to fall
By Kristina Sobol
Budrigannews.com – In December, Chinese house prices fell for a seventh month in a row as the real estate industry continued to be disrupted by rising COVID-19 cases, declining retail interest, and an extended liquidity squeeze.
sank by 1.5% in December compared to the same month last year, according to data from the National Bureau of Statistics. However, as the majority of the country’s stringent COVID measures were relaxed, the rate of declines slightly increased.
However, the real estate industry is likely to face ongoing challenges in the near future due to China’s ongoing COVID-19 outbreak. The real estate market in China has been severely impacted by a nearly three-year property crisis that has left some of the country’s largest developers severely short of cash.
These difficulties were exacerbated by the COVID-19 pandemic, as China’s zero-COVID policy imposed lockdown measures that disrupted construction activity and significantly impacted retail demand.
To help the struggling industry, the government has implemented a slew of stimulus measures and relaxed a number of lending regulations; however, these actions have not yet had an impact on the market.
Given that the real estate sector accounts for approximately a quarter of overall economic growth, weakness in the market also bodes poorly for China’s economy.
Because of this, the government recently relaxed restrictions on share sales and capital raises by local property developers, who had run out of cash over the past three years due to worsening market conditions.
This week, China’s is the focus to see how badly a rise in COVID-19 cases affected the economy. One of the main reasons China relaxed its COVID measures in December was slowing economic growth.
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