A former official of the People's Bank of China said that real estate downturn may last two years to stabilize.
According to Bloomberg, the Minister of Investigation and Statistics of the People's Bank of China Sheng Songcheng said on Saturday (January 13) in a forum in Shanghai that the sales area of new houses in the country this year will be reduced by 50 million square meters.It is expected that the sales area of new houses in 2025 will reach 850 million square meters.
He added that in this way, real estate will no longer become a drag on investment and economy.
Sheng Songcheng also said that the real estate market improved in November and December last year. The national sales area may reach 950 million square meters throughout the year.According to his estimates, the decline in the sales area in 2023 will narrowed half compared to 2022.
When Sheng Songcheng made this remark, the decline in the value of new residential sales in 100 cities in China in December has increased.
Bloomberg reports that China's unprecedented real estate market downturn has led to the loss of a key growth engine in the past three years, and has exacerbated financial risks after developers have set a record of breach of contract.
