From CNBC: 2024-05-20 23:14:48

China has announced measures to support the struggling real estate sector, including lowering down payment minimums and releasing financing for state-owned enterprises to buy unsold apartments.

Despite these efforts, S&P believes the market is still searching for a bottom, with lingering issues including a decline in real estate investment and slower-than-expected retail sales growth in April.

Analysts emphasize the need for homebuyers’ confidence to improve, with delayed apartment deliveries and uncertain economic outlooks impacting consumer spending and the property market.

The 70-city house price index has fallen rapidly, with housing prices dropping 25-30% from historical highs. Estimates suggest there are around 20 million pre-sold apartments awaiting completion, totaling a funding gap of 3 trillion yuan.

Beijing is expected to conduct a national survey of residential projects to assess funding needs for completing construction and delivering homes, a critical step in rebuilding confidence in China’s housing markets.

Read more: China’s sweeping measures to prop up the property sector will need time