According to official data released on Tuesday, China’s property investment decreased by 5.8% in the first quarter of 2023, compared to a 5.7% drop in the previous two months. The National Bureau of Statistics (NBS) revealed that property sales by floor area fell 1.8% year-on-year during Q1, a slight improvement from the 3.6% fall in the first two months.
New construction starts, measured by floor area, declined by 19.2% in the January-March period, following a 9.4% drop in the first two months. Additionally, funds raised by China’s property developers fell 9.0% year-on-year in Q1, after a 15.2% slump in January-February.
China’s property industry, which used to be a significant contributor to the country’s economy, has been impacted by a regulatory crackdown on developers’ high debt levels. This has resulted in delayed housing projects and homebuyers boycotting mortgage repayments.
This decline in China’s property investment and sales could have repercussions for the country’s overall economic growth, as the sector has been a major driving force in the past. It remains to be seen whether the government will introduce any new measures to support the industry or if the sector will have to adjust to the new regulatory landscape.
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