China’s Real Estate Market Expected to Recover by 2023

• 23 January 2023
• International News
• 2715 Views

Since the first half of 2021, China has experienced a rapid decline in property prices and home sales. Many developers had liquidity issues with deteriorating balance sheets. However, the situation is expected to stabilise in 2023, experts said. 

Investment in real estate in 2022 fell 10%  from 2021. Property sales slumped by 26.8%, the National Bureau of Statistics reported recently. 

To help recover the sector, China is committed to stabilising expectations, providing reasonable liquidity, and relaxing restrictions that were formerly introduced to address overheating in the market, Chinese Vice Premier Liu He said. 

The prospects of a real estate recovery are optimistic, property sales are expected to gradually stabilise in the first quarter, and real estate investment is expected to stabilise and recover in the second quarter, said Zhou Maohua, an economist at Everbright Bank. 

On the demand side, as COVID-19 restrictions eased, economic activity is expected to gradually return to normal, which will boost employment and income growth, bringing housing demand up accordingly, Zhou added. 

• Analysis