Analysts say real estate slump is still weighing heavily on household wealth and consumer confidence
With China’s three most economically important cities recently rolling out policies to address renewed weakness in the property sector, analysts say stabilising the industry would be significant in terms of boosting consumer sentiment, but that no quick market rebound should be expected.
Those efforts in the three first-tier cities, dubbed by some as the last line of defence for China’s real estate market, might result in short-term rebounds in limited regions, said Lian Ping, director general of the China Chief Economists Forum, but there was no end in sight for the wider slump in the country’s economically important property sector.
“From an investment perspective, the share of real estate has been steadily declining in recent years, but it still holds a significant portion – comparable to manufacturing and infrastructure,” Lian said.
“It has an even greater impact on consumption, affecting over a dozen industries directly or indirectly tied to it … the economy’s in a rough spot right now, and real estate’s the main reason,” Lian said.
