Chinese policymakers are hesitant to bolster the struggling real estate sector, prioritizing technological development over housing. Despite Beijing’s optimism, recent data reveals a 13.9% decline in real estate investment and falling home prices, signaling a prolonged downturn. Analysts anticipate further challenges as China’s economy grapples with the ongoing property slump.

Easing measures implemented in August failed to revive sentiment in the real estate market, with S&P Global Ratings forecasting an 8% drop in property sales this year. Moody’s Ratings also predicts a decline in home sales, citing fading demand from buyers awaiting policy easing. The sector’s stagnation continues to impact China’s economy significantly.

The real estate sector’s slump has led to a halving of property sales in recent years, shifting focus to manufacturing and exports to drive economic growth. Despite strong export performance, the decline in real estate poses challenges for sustained growth. Analysts anticipate a gradual stabilization of the property market once home prices begin to recover.

Read more at CNBC: China’s property slump is far from bottoming. But Beijing is prioritizing tech growth