China should continue to prioritize the principle of "houses are for living in, not for speculation" to prevent potential negative impacts on economic and social development, according to an editorial in the state-run Economic Daily, as the country faces a downturn in the property sector and potentially unwinding some curbs.
China's new home prices are expected to show no growth in 2023, reflecting the pressure on the crisis-hit property sector and the need for policymakers to restore confidence in the economy.
China has lowered requirements for homebuyers in an attempt to revive its struggling property market and address the financial crisis.
China's relief measures to support the property sector have spurred a home-buying spree in Beijing and Shanghai, with transaction volumes in both cities increasing significantly, indicating robust housing demand; however, concerns persist that this demand may not be sustained due to other restrictions and a faltering growth outlook.
New home sales in Beijing have increased by 16.9% in the week of September 4-10, indicating that government efforts to revive the property sector are having an impact in the Chinese capital. However, the rebound in sales is not reflected across the rest of China, with sales falling 20% on average nationwide.
China's recent policies to stabilize the property sector may not be enough to stimulate real economic growth, although they could generate demand, according to analysts.
China's property market is facing a crisis with an overwhelming amount of unsold homes, surpassing the number of people in the country, as the sector continues to slump since the default of China Evergrande group.
China's property market is in crisis with a surplus of empty apartments, estimated to be enough to accommodate 3 billion people, according to a former official, signaling ongoing challenges for the sector despite official claims of a "resilient" economy.
China's property sector has slumped since 2021, with big-name developers teetering close to default and an abundance of vacant homes that even China's population of 1.4 billion can't fill, according to a former official.
China is facing a housing crisis with rows of empty homes, leaving the country with an estimated 65-80 million vacant units, indicating a long-term decline in housing demand and raising concerns about the nation's economic growth.
China's property crisis, characterized by an excess of empty homes, could take up to a decade to resolve, according to economist Hao Hong, with the country's urbanization process stagnating and the property sector's contribution to GDP declining.
China's economic outlook, particularly for the real estate sector, is expected to become clearer in the last three months of the year, with potential government support and loosening of restrictions to stabilize the housing market and allow the economy to recover fully by mid-2024. However, economists predict that real estate growth will remain weak and prices may fall gradually, as significant price declines could have adverse social consequences.