O real estate sector of China It is showing positive changes and market confidence is improving, said the housing minister on Sunday, while policy formulators try to define a more optimistic tone for the economy this year in the face of increasing commercial pressure from the United States.
The comments come after several difficult years for the once prosperous Chinese real estate sector, with the investment falling more than last year and sales of real estate and new buildings falling at a pace of two digits, weighing heavily on economic growth.
At a background press conference of an annual Parliament meeting in Beijing, Housing Minister Ni Hong said that “since January and February, the real estate market has maintained a positive tendency to interrupt the declines and return to stabilization.”
China will not disclose the numbers from early 2025 for sales and starting real estate until March 17, but Nomura analysts said in a recent note that sales and prices earlier this year were staying better than expected in the largest cities in China.
Still, analysts sought by Reuters last month expect properties of real estate to fall even more this year and do not expect a market recovery by 2026.
Some analysts estimate that average property prices fell from 20% to 30% from August 2021. This triggered serious cash crises and led to incomplete projects, developer default and even public protests from real estate buyers, harming market sentiment.
Signs of stabilization or even slight recovery in the real estate market can help cushion China’s economy from the impact of US commercial tariffs on Chinese products.
