China's Property Investment Declines 12.9% in First Eight Months of 2023
New construction starts and property sales continue to decline, indicating ongoing challenges in the Chinese real estate market.
Property InvestmentReal EstateChinaConstructionEconomic SlowdownReal EstateSep 15, 2025
Property sales by floor area declined 4.7% year-on-year, compared with a 4.0% drop in the first seven months. This indicates a slight worsening in the sales performance of the sector, despite efforts by the government to stimulate the market.
New construction starts measured by floor area slumped 19.5% on year, after contracting 19.4% in the January-to-July period. The persistent decline in new construction starts highlights the cautious approach of developers in initiating new projects amid economic uncertainty and reduced demand.
Funds raised by China's property developers in the first eight months of the year were down 8.0%, versus a 7.5% decrease in the first seven months. This reduction in funding further exacerbates the financial challenges faced by developers, making it difficult for them to finance ongoing and new projects.
The ongoing decline in property investment, sales, and construction starts reflects the broader economic slowdown in China. The Chinese government has been implementing various measures to stabilize the real estate market, including easing mortgage requirements and providing fiscal support to struggling developers. However, the impact of these measures has been limited so far, and the sector continues to face significant headwinds.
Experts predict that the real estate market will remain under pressure in the coming months, with further declines in investment and sales possible. The government is expected to continue its efforts to support the market, but the effectiveness of these measures will depend on a variety of factors, including consumer confidence, economic growth, and global market conditions.
Despite the challenges, some analysts remain optimistic about the long-term prospects of the Chinese real estate market. They argue that the government's intervention and the gradual recovery of the economy could help stabilize the sector and spur a rebound in the future. However, for now, the focus remains on managing the current downturn and mitigating its impact on the broader economy.
Frequently Asked Questions
What is the current state of property investment in China?
Property investment in China has declined by 12.9% in the first eight months of the year compared to the same period last year, following a 12% drop in the January-to-July period.
How have property sales been affected?
Property sales by floor area have declined by 4.7% year-on-year, compared to a 4.0% drop in the first seven months.
What is the trend in new construction starts?
New construction starts measured by floor area have slumped by 19.5% on year, after contracting 19.4% in the January-to-July period.
How has funding for developers changed?
Funds raised by China's property developers in the first eight months of the year were down 8.0%, versus a 7.5% decrease in the first seven months.
What measures is the Chinese government taking to support the real estate market?
The Chinese government has been easing mortgage requirements and providing fiscal support to struggling developers to stabilize the real estate market.
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