China's Home Sales Slump Continues Despite Government Rescue Efforts
Home sales in China remain at low levels despite government measures aimed at stimulating the market. Recent data indicate that the volume of new apartment sales in major Chinese cities has been declining for several months, negatively impacting the economy and prompting discussions around potential adjustments in policy.
According to reports, home sales in China in August 2024 remained significantly below last year's levels, highlighting the ongoing stagnation within this sector. It is expected that the situation may worsen if government measures do not yield visible results in reviving housing demand.
Economists warn that declining sales could hinder the recovery of the Chinese economy, which is already facing various internal and external challenges. This downturn in the real estate sector is also raising concerns among investors, who express skepticism about the sustainability of China's financial markers amidst current economic uncertainties.
The Chinese government has already taken several steps to boost housing demand, including lowering mortgage interest rates and easing conditions for developers. However, investors remain cautious, and many residents are hesitant to make significant purchases, even with low-interest rates in place.
The decrease in sales volume in the real estate sector highlights the need for a more ambitious policy that not only addresses the current situation but also ensures sustainable development of the housing market in the future. This includes rethinking approaches to construction and financing, as well as supporting demand for rentals and secondary housing.
At this point, the Chinese economy is in a state of anticipation, and outcomes in the real estate sector will be crucial for future economic predictions and the government's scale of support for its economy.
