Below trend growth to continue
Reports of a property rebound appear premature
A range of media reports in the early months of 2023 have touted an apparent rebound in China’s property sector. Recent years have been particularly challenging for the industry – facing the negative impacts of regulatory changes and COVID-19 constraints – culminating in a sharp slowing in property sales, construction activity and the collapse of several property developers. While there are signs that property sales are stabilising and prices are rising in some locations, it is too early to suggest that property will shift from being the headwind to growth of recent years to being a tailwind in the near-term.
For further details, please see the China Economic Update (May 2023)
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