China’s property market continues to struggle despite government stimulus measures aimed at reviving the sector. Homebuyers, concerned about the uncertain economic outlook, are staying cautious, and property developers report soft sales.
While the Chinese government has implemented policies to support the property market amid a deepening debt crisis in the sector, these measures have yet to significantly boost confidence among buyers. New home prices in China fell for the third consecutive month in September, and property sales and investment have seen double-digit declines.
Centaline China CEO Andy Lee noted that while the policies have lowered buying costs, they have not generated new demand. Sales in October are also expected to remain soft, as many buyer visits to sites have not translated into actual purchases.
Sales performance varies among cities, with top-tier cities like Beijing and Shanghai experiencing some price increases, while smaller cities with excess supply continue to struggle with lukewarm demand.
S&P Global Ratings has revised down its forecast for China’s property sales, expecting a drop of 10% to 15% this year compared to 2022, with a further 5% drop in 2024.