BEIJING: China's property market woes worsened in November, with prices for both new and resale homes falling amid weaker demand in bigger cities, a private-sector survey showed on Wednesday (Dec 1).

The property sector, accounting for a quarter of the country's gross domestic product, has slowed sharply in recent months, with sentiment shaken by tight regulations and a growing liquidity crisis that has engulfed some of the country's most indebted developers.
BEIJING: China's property market woes worsened in November, with prices for both new and resale homes falling amid weaker demand in bigger cities, a private-sector survey showed on Wednesday (Dec 1).

The property sector, accounting for a quarter of the country's gross domestic product, has slowed sharply in recent months, with sentiment shaken by tight regulations and a growing liquidity crisis that has engulfed some of the country's most indebted developers.
"The downward trend in the property market remains unchanged in the near future", said the academy's research director Cao Jingjing.

Rapidly deteriorating conditions in the property sector have prompted speculation that policymakers may start to dial back tough restrictions on buyers and developers and even cut interest rates.

But policymakers are widely expected to stand firm for now, while making some financial tweaks to help genuine home buyers.

Some banks have accelerated the disbursement of approved mortgages and some were told to issue more loans to property firms for project development.
The southwestern city of Chengdu last week moved to ensure developers receive funds from presold properties and fresh loans, in the first such move by a Chinese city to ease a liquidity crisis.

Monthly new home prices in Tier-one and Tier-two cities dropped 0.1 per cent and 0.02 per cent, versus gains of 0.01 per cent and 0.09 per cent in October, the data from the Academy survey showed.
The property regulation policies are expected to be fine-tuned, said the Academy's Cao.
Oxford Economics in a recent note expected the property downturn would continue into the first half of 2022.

Source: Reuters