KEJI - China's Property Sector Slump: Is Recovery On The Horizon?

• For the past two decades, the Chinese property sector’s exponential growth has been a key GDP growth driver for China – until its rise ended abruptly in July 2021 when property sales slumped amid increased government policy tightening.
• We expect any policy easing to take at least three to six months to translate into a recovery in the physical property market.
• Looking ahead, challenges for the sector include weak housing affordability, slower urbanization, high housing ownership, a supply-demand mismatch, and overhang from worries about property tax.

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