After various giants in the construction industry in China, such as the Evergrande Group, had to report defaults last year, it has become quiet in the mainstream media about the industry. But the topic is anything but over, at least for people who follow the current events in the real estate market in China.
The real estate market in China will remain on a downward trend in 2022. According to Caixin Global, the sales of real estate of the top 100 real estate developers fell by 39.6% this year.
In addition, sales in January 2022 were down 43% compared to January 2021 for many developers.
Home sales are also falling significantly in the technology city of Shenzhen. The sale of second-hand houses decreased by 60% in 2021. The second-hand house sales declined to the lowest level since 2007.
Yan Yuejin, director of Shanghai-based E-house China Research and Development Institute commented,
“Sales won’t recover any time soon unless some fundamental changes are made to the even though we saw some relaxation in policies late last year to support the sector.”
Related Articles
Why China’s Real Estate Market Matters After All
China’s Inflation Falls to Lowest Level in Six Months as Government Controls Commodity Prices.