According to analysts, China's real estate market may not fully recover from its decline despite the government's "underwhelming" stimulus efforts, as buyer confidence remains sunken.

Quick Summary:

The latest government measures are merely a drop in the ocean’, and rebuilding homebuyers’ confidence in the presale system is a precondition for any revival, analysts say.

To bail it out, authorities on this month reduced down-payment ratios, cut mortgage interest rates and introduced the 300 billion yuan (US$41.4 billion) relending facility, which allows local state-owned enterprises to buy unsold homes they can then offer as affordable housing.

Now, few expect quick improvement.“It will be a long time before we see home prices rise to levels as high as in 2017 and 2018, unless there is dramatic inflation or quantitative easing,” Zhu said.“The United States took six to seven years to get out of the woods of an economic recession brought about by a property crisis, while Japan took 20 years.

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Article Details

Author / Journalist: Yulu Ao

Category: Business

Markets: Hong KongChinaJapanUnited States

Topics: China’s Homes Property Market Years According Yuan “the Buyers China Prices

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-05-25 @ 10:00:10 (1 months ago)

News Timezone: GMT +8:00

News Source URL: scmp.com

Language: English

Article Length: 1702 words

Reading Time: 10 minutes read

Sentences: 45 lines

Sentence Length: 38 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © SCMP

News ID: 21078773

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