Insight
China economic focus August 2023: policy flop fails property market
Report summary
China's property market has been in recession since late 2021 but supportive measures so far have failed to revive it. Home buyers lack confidence in either property or the overall economy and are reducing their exposure to the property sector. Relaxing the housing policy in tier 1 cities could prove a fillip for property developers. However, it will only have a marginal impact on demand for construction-related commodities. The current recession will stabilise in 2024 but the negative impact on commodity demand could last until 2026. Over the medium term, slowing urbanisation means property completions will trend downwards.
Table of contents
- Executive summary
- Supportive measures fail to revive China's property market
- Unintended consequences of lower interest rates
- Room for further relaxing of home purchase restrictions
- Property completions will trend down
- Appendix
Tables and charts
This report includes 15 images and tables including:
- Mortgage rate dropped since 2022
- Outstanding mortgage loans dropped while consumer loans increased
- New home sales, Nanjing
- New home sales, Shaoguan
- Newly urbanised population
- Urban housing completion
- Wood Mackenzie's proprietary China data
- Manufacturing PMI
- Industrial production and retail sales
- Trade
- Inflation
- Investment
- Property
- Money supply (M2)
- Required reserve ratio
What's included
This report contains:
Other reports you may be interested in
Insight
China economic focus September 2023: three factors for recovery
The property sector, industrial production and exports will determine China’s recovery.
$950
Commodity Market Report
Global copper short-term outlook August 2023
Macro-economic and supply-side developments will drive short-term prices, while expected surpluses will weigh on the market beyond 2023.
$5,000
Commodity Market Report
Global iron ore short-term outlook August 2023
Market finds support but caution should prevail
$5,000