China Property Market Faces Torrential Headwinds as Evergrande Collapse Shines Light on Sector’s Problems

China’s property market is imploding and sending signs that China’s GDP is in trouble.

Reuters reported on Wednesday:

China’s property market suffered more headwinds in November, with home prices, sales, investment and construction all falling, weighed by weak demand and a cash crunch among developers.

New home prices fell 0.3% month-on-month in November, the biggest decline since February 2015, according to Reuters calculations based on data released by the National Bureau of Statistics (NBS) on Wednesday. That was worse than the 0.2% drop in October.

Only nine of 70 cities tracked by NBS saw monthly price gains in November, the fewest since February 2015, according to Reuters calculations.

In a separate NBS statement, home sales by value slumped 16.31% in their fifth month of declines, pointing to gloomy demand despite measures taken by some cities to boost transactions.

“Cities of all classes are under pressure,” said Yan Yuejin, director of Shanghai-based E-house China Research and Development Institution.

“The current scale of market supply is large and demand is weak. The key is to accelerate inventory de-stocking to stabilise home prices.”

China’s property sector has been grappling with tighter regulations this year, including curbs on bank lending and limits on how much property developers can borrow amid growing financial woes.

Last week, China Evergrande Group (3333.HK) and another major developer Kaisa (1638.HK) missed payment deadlines on their offshore bonds, prompting Fitch to downgrade the companies to “restricted default” status.

We’ve been reporting for months that China’s Evergrande is a symbol of the China property market and economy in general.

“If Not Coming, It’s Already Here” – TGP’s Joe Hoft in Response to Steve Bannon’s Question Whether a Financial Crisis Is Coming to China

China has a mess to contend with while the rest of the world ignores this fact.  

Dear Reader - The enemies of freedom are choking off the Gateway Pundit from the resources we need to bring you the truth. Since many asked for it, we now have a way for you to support The Gateway Pundit directly - and get ad-reduced access. Plus, there are goodies like a special Gateway Pundit coffee mug for supporters at a higher level. You can see all the options by clicking here - thank you for your support!
Photo of author
Joe Hoft is a Radio Host at TNTRadio.live, Author, Former International Corporate Executive in Hong Kong for a Decade, and a Contributor at TGP since 2016. Joe is the author of five books, including his new bestseller, "The Steal: Volume II - The Impossible Occurs" which addresses the stolen 2020 Election and provides an inventory of issues that prove that the 2020 Election was uncertifiable and never should have been certified for Joe Biden.

You can email Joe Hoft here, and read more of Joe Hoft's articles here.

 

Thanks for sharing!