China did not keep house prices from collapsing
The cost of new housing in China has been falling for the 15th month in a row, Azernews reports.
It referred to official data that showed that real estate prices
in September fell at the fastest pace since May 2015. And this is
despite all Beijing's efforts to revitalize this segment of the
economy. In annual terms, new housing in China fell in price by 5.8
percent. Real estate sales decreased by 17.1 percent in
January-September.
The prolonged downturn in China's real estate market, which once
accounted for a quarter of the country's economic activity, remains
a serious drag on the economy. The Chinese authorities are trying
to remedy the situation by lowering mortgage rates and easing
restrictions on home purchases. In part, this helped to spur demand
in large cities.
"The volume of national real estate sales will decrease to about 8.5-9 trillion yuan in 2024 and even more to 8-8.5 trillion yuan in 2025," said Edward Chan, an analyst at S&P Global Ratings.
It is noted that over the next three years, China will spend about six trillion yuan (raised through special treasury bonds) to revive the economy.
According to the State Statistical Office of the People's Republic of China, the volume of investments in the real estate sector for seven months fell by 10.2 percent year-on-year, to $ 852 billion. And the total area of commissioned buildings, including the residential real estate sector, decreased by almost 22 percent.
In May, the People's Bank of China tried to remedy the situation by abolishing the nationwide minimum mortgage interest rate and reducing the down payment for home buyers.
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