According to data released on Tuesday by the National Bureau of Statistics (NBS), property investment in China witnessed an 8.5% decline in the initial seven months of the year when compared to the same period the previous year. This downturn follows a 7.9% slide in investment during the January-June period.
Official data also indicates that property sales, as measured by floor area, fell by 6.5% in the January-July period year-on-year, a more significant drop compared to the 5.3% decrease seen in the first six months of the year. This decline in sales can be attributed to ongoing weak demand and a deepening property debt crisis.
When assessing new construction starts, a metric measured by floor area, a decrease of 24.5% year-on-year was observed in the initial seven months. This fall follows a 24.3% drop during the first half of the year.
Additionally, funds raised by China’s property developers saw an 11.2% decrease on a year-on-year basis, extending the 9.8% decline noted during January-June.
China’s ongoing property debt crisis is exacerbating economic challenges, with limited robust policy support compounding the situation. This crisis is adding to the hurdles faced by the already struggling economic recovery.
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