UBS - China's Housing Construction Set For Third-Year Contraction: Consensus Report From Goldman Sachs Morgan Stanley And UBS | Benzinga
China’s housing construction downturn is expected to continue into 2024, implying that governmental efforts to curtail the slump have been unsuccessful, as per a consensus by top investment banks on Wednesday.
What Happened: A consensus including Goldman Sachs Group Inc, Morgan Stanley, and UBS Group AG indicates that China’s housing construction is set to decline for the third year in a row, as per a Bloomberg report.
The Chinese government’s initiatives to boost housing demand have not been able to reverse the property market downturn. The property sector’s contribution to goods and services demand has been dwindling, with real estate-related demand now making up around 20% of the GDP, a decrease from 24% in 2018.
Goldman Sachs economists, led by Hui Shan, anticipate a “double-digit” contraction in real estate fixed-asset investment in the ...