Chinese Housing market hits its eight-year lowest point

📌 In October, China home prices saw their worst drop in in eight years, indicating that the country’s real estate crisis is becoming worse despite the government’s increased efforts to boost demand. According to data released on Thursday by the National Bureau of Statistics, new property prices in 70 cities—apart from those receiving state subsidies—dropped by 0.38% in October compared to 0.3% in September. It was the steepest decline since February 2015. In smaller cities, price decline was less relevant.

📌 The decline, which comes as official data this week revealed a further slump in sales and property investment, adds to the evidence of a prolonged housing slowdown. Since August, key cities have implemented more stimulus measures, but they haven’t had much of an impact on the industry, which is delaying China’s economic recovery. After China’s post-Covid reopening, there was a brief housing market resurgence earlier this year, but, according to Chen Wenjing, associate research director at China Index Holdings, it «turned out to be short-lived”, as the uncertain outlook for the real estate market and squeezed incomes are deterring homebuyers.

Source: Bloomberg