Real estate sales are expected to fall 24.5% in 2022.
This is a much larger drop than the 10% predicted by a Reuters poll of analysts and economists in May.
The latest September survey showed that new home prices are expected to fall by 1.4% this year.
Home buyers are still cautious as China’s real estate sector has gone from crisis to crisis since 2020.
Quote: Daniel Zhou, analyst at Moody’s
“Uncertainty over China’s growth outlook and concerns over project completions will be a big reason for weak demand from homebuyers over the next 6-12 months.”
The real estate sector represents about a quarter of the Chinese economy
and now weighs in on the country’s general outlook.
According to analysts, next year housing prices will increase by 2%.
But sales will remain weak, falling 15% due to weak demand.