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Prices for new homes in China fell for the second consecutive month in October, when a shortage of property and strong pressure on homeowners disrupted the country’s economic outlook.
Prices for new homes in 70 major cities in China fell by 0.25 percent in October compared to last month, according to a National Bureau of Statistics survey.
Metric, which too on the edge of September for the first time in more than half a year, it reflects the pressure on lawmakers who have tried to reduce debt growth in all countries. real estate component but is now facing financial difficulties for many manufacturers.
Last week, the US Federal Reserve warned that pressure within the economy, which directly and indirectly affects China, exceeds one-fourth of China’s economy. posed a “threat to the US economic system”.
Tommy Wu, an economist at Oxford Economics, a research group, also noted a 24 percent decline in real estate sales in October each year, and said the decline in housing was “difficult for companies” during the economic downturn. weak.
“We anticipate that China ‘s inflation rate will be significant but there will be, due to the decline in non-sale housing, regulatory space, continued urban growth and economic growth,” he said.
Goldman Sachs analysts say prices have risen 3.4 percent a year but added that “only a handful of cities saw high prices in primary and secondary markets in October”.
The crisis in Evergrande, the world’s largest debtor, began in the summer and spread to many builders, who are a major part of the Asian market for high yields. Many are struggling to make new money.
In recent months, in the face of a collapse in real estate sales, government developers have calculated more buying space on trade in 22 major Chinese cities.
China has put in place measures to curb lending to developers last year out of fear of rising property prices, and increasing mortgage rates. Last week, government media reports indicated that the reduction could be reduced in some ways.
Iris Pang, China’s chief financial officer at ING, expressed concern that builders would fail and construction would be halted, but said the concerns “could be resolved” and spoke of hope for further unfinished projects and government measures to reduce inflation. .
On Monday, Sunac, one of China’s largest developers, said he had raised about $ 1bn in new sales and shares in his business. Kaisa, a major lender in global markets, said on Friday that it would not offer a short-term share after one week of debt restructuring.
The official data on Monday also showed up retail sales hit expectations rise 4.9 percent annually. Industrialization, which last year was China’s fastest-growing recovery from the epidemic, increased 3.5 percent. In the third quarter, the economy grew lowest traffic in the year.
Real estate sales contracted 5.4 percent in October, according to Oxford Economics estimates based on government estimates, but more than 7.2 percent year-on-year.
Additional reports of Andy Lin in Hong Kong
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