China’s National Bureau of Statistics released vital data pertaining to the real estate sector in China. Real Estate was a major driving force behind China’s economy and the troubles faced by this sector have global implications.
Property investment fell by 5.8% in the first quarter of 2023 in comparison to the last year. Even the new construction starts fell by 19.2% in March, compared to the 9.2% drop reported in the first two months.
A 1.8% decline year on year was observed in property sales by floor area.
There is also a 9% year-on-year slump in funds raised by property developers.
China’s property sector continues to struggle due to the regulatory crackdown initiated by the protest by the buyers. The protesters were refusing mortgage payments because of the real estate developers' inability to keep their commitments.
The crisis has both financial and political implications which means that the Chinese government is not going to ease regulations anytime in the near future.
