China’s Property Slump Deepens As Prices Fall Sharply Despite Easing, Dragging Growth To Slowest Pace In A Year

Benzinga

China’s property slump worsened in September as new-home prices fell 0.41% and resale prices 0.64%, deepening a four-year downturn that continues to weigh on growth.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:03China's property downturn deepened in September as home prices fell faster,

00:07despite government efforts to revive the market, according to Bloomberg.

00:11New home prices in 70 cities, excluding state-subsidized housing,

00:16dropped 0.41% from August, the sharpest decline in nearly a year,

00:20while resale prices slid 0.64%.

00:23Analysts say the four-year slump continues to drag on China's broader economy,

00:28which posted its slowest growth in a year last quarter.

00:32Pantheon Macroeconomics' Kelvin Lam said,

00:34a recovery in prices may not occur until 2027,

00:37when inventories return to healthier levels.

00:40New home prices rose slightly in Beijing and Shanghai in September

00:43after both cities relaxed home-buying restrictions, boosting suburban sales.

00:48China's GDP grew 4.8% in the third quarter, slowing from 5.2% previously,

00:53while real estate investment fell 13.9%,

00:56the steepest drop since 2014.

00:59The property slump has weighed on domestic sentiment and fixed asset investment,

01:04though the economy remains on track to meet its annual growth target.

01:07For all things money, visit Benzinga.com.

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