German construction sector hits record cancellations amid soaring costs and rates

Construction cancellations in Germany's housing sector hit a record high in August per Ifo institute survey.
20.7% of construction firms reported cancelled projects, up from 18.9% in July.
Projects are no longer viable due to rapid rise in costs and higher interest rates.
44.2% of firms reported a lack of orders in August vs 13.8% last year.
Majority of firms fear further declines in business in coming months amid huge uncertainty.

reuters.com

Relevant topic timeline:

8/21/2023

Downturn in German housing construction worsens in July - Ifo

The downturn in Germany's residential construction sector worsened in July, with a record number of companies reporting dwindling orders, as higher interest rates and rising construction costs hamper new business.

8/16/2023

China's economic woes mount as trust firm misses payments, home prices fall

China's economic slump is worsening due to the prolonged property crisis, with missed payments on investment products by a major trust company and a fall in home prices adding to concerns.

9/14/2023

China's Housing Crisis Deepens as Thousands of Projects Halted, Defaults Rise

China's housing crisis continues as thousands of building projects are halted or slowed, leading to defaults and restructuring, a loss of confidence in the market, and a decline in sales.

9/22/2023

German Housing Market Cools Rapidly as Prices Plunge, Permits Decline

German housing prices experienced the largest decline since records began in the second quarter of 2023, due to high interest rates and rising materials costs, creating a crisis in the construction industry.

9/25/2023

Germany's Housing Crisis Deepens as Costs Rise and Construction Stalls

The property market in Germany is in crisis as rising interest rates and raw material costs lead to a spike in bankruptcies among developers, causing construction projects to halt and leaving homeowners-to-be in financial distress. Chancellor Olaf Scholz is calling for talks with industry leaders to find solutions to jump-start construction and alleviate the growing housing shortage.

9/25/2023

Germany Drops Stricter Energy Rules for Buildings, Pledges Billions for Housing Instead

Germany's government has agreed on a 14-point plan to address the housing crisis, which includes putting stricter building insulation standards on hold and investing €18 billion in the sector by 2027. However, the plan has faced criticism from the construction industry and environmental groups.

Topics

Posted 9/12/2023, 7:17:00 AM

German construction sector hits record cancellations amid soaring costs and rates

Construction cancellations in Germany's housing sector hit a record high in August per Ifo institute survey.
20.7% of construction firms reported cancelled projects, up from 18.9% in July.
Projects are no longer viable due to rapid rise in costs and higher interest rates.
44.2% of firms reported a lack of orders in August vs 13.8% last year.
Majority of firms fear further declines in business in coming months amid huge uncertainty.

reuters.com

Relevant topic timeline:

8/21/2023

Downturn in German housing construction worsens in July - Ifo

8/16/2023

China's economic woes mount as trust firm misses payments, home prices fall

China's economic slump is worsening due to the prolonged property crisis, with missed payments on investment products by a major trust company and a fall in home prices adding to concerns.

9/14/2023

China's Housing Crisis Deepens as Thousands of Projects Halted, Defaults Rise

China's housing crisis continues as thousands of building projects are halted or slowed, leading to defaults and restructuring, a loss of confidence in the market, and a decline in sales.

9/22/2023

German Housing Market Cools Rapidly as Prices Plunge, Permits Decline

9/25/2023

Germany's Housing Crisis Deepens as Costs Rise and Construction Stalls

9/25/2023

Germany Drops Stricter Energy Rules for Buildings, Pledges Billions for Housing Instead