China's Property Market yet to Bottom

Dow Jones
08/18

0402 GMT - The broad-based deterioration across key indicators in China's property sector, including investment, housing starts and home prices, reinforces the view of Barclays Research that the market has yet to bottom. "We expect property investment to contract by 20% in 2026, following an average annual decline of 12% during 2022-24," its economists say in a report. This would leave property investment at just 45% of its 2021 peak. The sector's direct contribution to the GDP has also fallen significantly, to around 13% in 2025 from 25% in 2021. Continued weakness in property is weighing on employment, income expectations and consumer confidence, making it an important downside risk to consumption and the broader growth outlook, they say.

 

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