China Reports Continued Decline in Property Sales and Investment

China’s property sector continues to face challenges as data from the National Bureau of Statistics (NBS) reveals a 7.8% year-on-year decline in property sales by floor area for the period of January to October. This follows a 7.5% drop recorded in the first nine months of 2023, indicating that the real estate market in China has not yet recovered from its prolonged downturn.

Additionally, property investment in the first ten months of 2023 recorded a 9.3% decrease compared to the same period in the previous year. The decline persisted from the 9.1% drop observed in January-September. The data suggests that despite various measures taken by the authorities to stimulate the property market, investment activities remain subdued.

New construction starts, measured by floor area, also experienced a downturn, falling by 23.2% year-on-year. This follows a 23.4% decline in the first nine months of the year, indicating a sustained contraction in new construction projects.

Furthermore, funds raised by China’s property developers witnessed a 13.8% year-on-year decrease for the January-October period, following a 13.5% fall in the first nine months of the year. The reduced funds indicate the challenges faced by property developers in raising capital amid the ongoing downturn in the real estate market.

The latest data underscores the persisting headwinds in China’s property sector, reflecting the broader economic challenges and the impact of regulatory measures aimed at controlling speculation and curbing excessive debt in the real estate market. The authorities continue to navigate the delicate balance between stabilizing the property market and preventing financial risks associated with excessive leverage and speculative activities.