China has unveiled a series of initiatives to revitalise its struggling property market following the sharpest decline in house prices in a decade.
The country’s central bank and regulatory bodies have decided to permit local governments to purchase certain apartment units, ease mortgage regulations, and commit to completing unconstructed homes, marking some of the most comprehensive reforms to date.
This announcement arrives alongside new data revealing the steepest fall in new home prices in over nine years, underscoring the deepening crisis in a sector that once contributed to one-fifth of the nation’s economic output and continues to impact overall economic confidence and growth significantly.
The property market downturn has severely affected Chinese consumers, with investment bank Nomura noting approximately 20 million deserted or incomplete homes across China.
Despite governmental efforts to stimulate economic activity, national data indicates a slowdown in consumer spending. Retail sales growth decelerated to 2.3% in April, the weakest rise since December 2022, falling from 3.1% in March and underperforming compared to projections.
Dan Wang, chief economist at Hang Seng Bank China, attributed the subdued retail sales figures to low consumer prices and a further decline in housing sales.
