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China’s Once-Sizzling Property Market has Gone Cold – NYT

Efforts to revive the sector, which could account for up to 30% of GDP, with lower mortgage rates, easier credit, subsidies and relaxed regulations have not worked yet, a report says


China's efforts to revive the sector with lower mortgage rates, easier credit, subsidies and relaxed regulations have not worked yet, a report says.
Efforts to revive the sector with lower mortgage rates, easier credit, subsidies and relaxed regulations have not worked yet, a report says. File photo: Hector Retamal, AFP.

 

The Covid pandemic has delivered a chilling blow to China’s property sector at a time when it was starting to crumble under the weight of huge debts accumulated by developers such as China Evergrande, a report by the New York Times says, adding that new home prices fell in more than half of the country’s 70 biggest cities for the first time since 2016 and sales plunged more than 60%.

But so far, efforts to revive the sector, which could account for up to 30% of gross domestic product, with “lower mortgage rates, easier credit, subsidies and relaxed regulations have not worked”, the report said, noting that buyers were also protesting over quality problems and unfulfilled promises.

Read the full report: The New York Times.

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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