China's Property Sector Is Showing Positive Changes, Minister Says
China's housing minister has expressed optimism about the country's property sector, citing improving market confidence as policymakers aim to set a more upbeat tone for the economy in 2025. Despite several tough years for the real estate industry, the minister stated that the market has shown signs of stabilisation since January and February. However, analysts predict that home prices will continue to drop further this year, with some estimates suggesting a decline of up to 30% since 2021.
- The government's efforts to provide financial support to qualified developers may help alleviate cash crunches and stabilize the market, but it remains unclear whether these measures will be sufficient to reverse the trend.
- Will China's property sector recovery be driven by domestic consumption or will international trade pressures continue to pose a significant challenge?