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China Property Market Contraction Worsened in April: Nomura

Nomura says China is supporting the easing of property curbs by local governments but is sticking with strict national curbs on the market.

Some of China's state banks and asset managers are refusing to rescue distressed property companies because of the debts they will incur, sources say.
A housing complex built by Chinese property developer Evergrande in Huaian in China's eastern Jiangsu province.


China’s property market contraction worsened in April on strict Covid lockdowns in Shanghai and elsewhere, a Nomura Holdings research note said.

Key points:

  • The top 100 developers saw new home sales volume and value growth plunge 61.2% and 58.6% year-on-year, respectively, in April, according to China Real Estate Information Corp.
  • New home sales volume in 30 major cities monitored by Wind also deteriorated, plummeting 53.1% in April from 46.9% in March, according to Wind data on 30 major cities.
  • Land sales shrank in both volume and value terms in April, tumbling 47.9% and 59.6%, respectively, down from -37.8% and -41.1% in March, according to Wind data that tracks 100 cities.

Nomura says that while China is supporting local government easing of local property curbs, it has shown no signs of relaxing its national property curbs. Beijing is sticking to its ‘Volcker moment’, it said.

A ‘Volcker moment’ refers to radical moves made by former US Federal Reserve chairman Paul Volcker in the late 1970s, when he tightened monetary policy dramatically to contain inflation.


• Kevin Hamlin





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Kevin Hamlin

Kevin Hamlin is a financial journalist with extensive experience covering Asia. Before joining Asia Financial, Kevin worked for Bloomberg News, spending 12 years as Senior China Economy Reporter in Beijing. Prior to that, he was Asia Bureau Chief of Institutional Investor for ten years.


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