The demand for new houses in China could stay at 5 million units per year over the next few years, lower than the peak of 20 million units in 2017, which could mean a long slump in the property market in the country.

The slump started in 2021 amid debt woes faced by developers, Reuters reported Tuesday, citing Goldman Sachs.

Chinese home prices declined 0.2% in May, continuing a two-year trend of stagnation during the month.

"Our earlier estimates did not account for the fact that investment demand in China could turn negative as owners sell vacant apartments, and that the 2015-18 government-led shanty town redevelopment should result in fewer demolitions in subsequent years," Reuters quoted Goldman Sachs as saying.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)