China’s property market continues to suffer in August and the crisis finds no way to end, official data showed on Friday, September 16.
Housing prices, property sales and investment all dropped in August, worsening the real estate crisis.
Home prices marked a 12 month decline in a row, showing the real estate market would take much longer, with government support, to recover.
China’s National Bureau of Statistics data show that new-home prices continued a month-on-month decline in August, down 0.3% from July, when they fell 0.11%.
Out of the 70 cities surveyed by China’s National Bureau of Statistics, 50 posted home price declines in August, up from 40 cities in July.
Figures also showed that China’s residential sales dropped about 30% and property investment shrank over 7.4% for the first eight months.
Zhang Dawei, chief analyst at property agency Centaline told Reuters, “The sector is still in the process of finding its bottom, though it is getting closer, even as policies have been eased across the board.”
Confidence in the industry has been hit by mortgage boycotts across the country when developers failed to deliver projects on time due to strapped liquidity and COVID restrictions.
Reuters reported that new constructions by floor area dropped to the biggest decline in almost a decade, plummeting 45.7% year-on-year this month. In July, the number was 45.4% drop.
China’s Evergrande, the world’s most indebted firm, this week said it would resume its remaining unfinished projects by the end of the month.
Chen Wenjing, associate research director at China Index Holdings, told Bloomberg, “A lot more supportive measures are needed to really make buyers confident on the home market again.”