China’s Property Investment Down 7.4% Y-o-Y During First 8 Months of 2022

• Kongleaphy Keam
• 29 September 2022
• International News
• 2169 Views

China’s investment property investment dropped by 7.4% y-o-y in the first eight months of 2022, a further decrease of 1% in the first seven months, reported Xinhua.

According to the National Bureau of Statistics (NBS) report, the total property investment in this period was 9.08 trillion yuan (US$1.31 trillion).

Investment in residential buildings shares were at 6.89 trillion yuan, down 6.9% y-o-y. Commercial housing sales in terms of floor area were also down by 23% y-o-y. Besides, in terms of value, sales fell 27.9%.

The report added that more cities are seeing a decline in home prices. In August, 50 out of the 70 cities saw a month-on-month drop in new home sales prices. Meanwhile, a total of 56 cities witnessed a decrease in resale home prices.

One of the causes of the real estate downturn in China is the debt crisis of large developers such as Evergrande.

Recently, China Evergrande has vowed to restart construction of all frozen property projects by the end of September, prompting a response to the nationwide mortgage boycott. (Read more)

Meanwhile, the Chinese government also plans to issue 200 billion yuan (US$29 billion) in special loans to help developers finish their stalled housing projects, according to Caixin. (Read more)

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