Real estate investment in China fell by 10.1% y/y in January-September

Real estate investment in China fell by 10.1% in the first 9 months of this year compared to the same period in 2023. This is reported by Reuters with reference to data from the National Bureau of Statistics (NBS).

Sales of real estate by area in January-September decreased by 17.1% y/y compared to a drop of 18% y/y in the first 8 months. The volume of new construction by area for 9 months decreased by 22.2% y/y. The amount of funds raised by Chinese developers in the period decreased by 20% y/y.

In recent weeks, the Chinese authorities have announced measures to support the real estate sector. In particular, banks were instructed to reduce mortgage rates on existing housing loans. In addition, restrictions on the purchase of housing in large cities were further eased.

According to Shen Laiyun, deputy chairman of NBS, the decline in key indicators of the real estate sector has decreased over the past three quarters, which shows that the measures taken to stimulate the housing market are having an effect.

As GMK Center reported earlier, in September 2024, China’s steel companies reduced steel production by 1.1% month-on-month to 77.07 million tons, the lowest level since December 2023. Improved seasonal demand, coupled with the stimulus package from Beijing, helped slow the monthly decline in production, which amounted to -3.3% m/m in August, -9.5% m/m in July, and -1.3% m/m in June.