China's property slump continues as October prices fall
China’s property market continued its slump in October, with private data showing home prices and sales falling, suggesting lacklustre sentiment and a bleak outlook amid strict COVID curbs, which hit consumer confidence.
China’s property sector, once a pillar of growth, has slowed sharply in the past year as a result of a government clampdown on excessive borrowing by developers, and a COVID-19-induced economic slump.
Prices in 100 cities dropped for the fourth straight month in October, falling 0.01 percent month-on-month after a decline of 0.02 percent in September, according to a survey on Tuesday by China Index Academy (CIA), one of the country’s largest independent real estate research firms.
Property sales by floor area in 100 cities fell about 20 percent year-on-year in October, according to a separate statement by the academy.
Analyst Chen Wenjing at the research firm said property recovery depends on COVID containment measures and the strength of policies.
Any rebound in the real estate market is expected to be delayed if the country sticks with strict COVID restrictions to quell the repeated coronavirus outbreaks, Chen said. Such curbs are expected to stay in place for some time after the Communist Party Congress last month. Read More...
