China’s ‘piecemeal’ stimulus plan stirs optimism in property market

For Beijing-based real estate agent Xue, deals have bounced back over the past week in the wake of government measures aimed at propping up the country’s stumbling property sector and the broader economy.

“The inventory of available properties is decreasing daily,” said Xue, who asked to be identified by one name, adding there were signs that after a long period of falling prices, some homeowners were hoping to raise them again.

Xue’s upbeat prognosis was not universally shared — other agents reported little change in the market — but high-frequency property market data over the past week showed some increase in buyer interest in the country’s biggest cities, economists said.

The precarious state of China’s property sector, which normally accounts for more than a quarter of activity in the world’s second-largest economy, prompted Beijing last week to unleash its most comprehensive effort in years to rekindle demand in the debt-stricken industry.

The measures, which included relaxing requirements for mortgage downpayments and interest rates, came alongside wider steps designed to boost confidence that targeted the country’s stock market, consumer sentiment and weakening currency, the renminbi.

Taken together, the announcements represented policymakers’ firmest acknowledgment of the scale of the challenge facing China’s faltering economy. But economists said investors would wait for more evidence of a tangible impact on domestic demand before venturing back into the market.

“These are the strongest measures to date when it comes to the property market, so it really shows that Beijing is putting some muscle behind its words,” said Frederic Neumann, HSBC chief Asia economist. “It remains to be seen really how much traction they’re getting.” 

You are seeing a snapshot of an interactive graphic. This is most likely due to being offline or JavaScript being disabled in your browser.

China’s economy began showing signs that a post-pandemic recovery was losing steam in the second

The original article can be found here

Scroll to Top