China Property Market Slumps Since Mid-2021; Investment and Construction Recovery Still Needs Time

Since regulatory tightening in mid-2021, China's real estate market has undergone a sharp downturn. Property sales have fallen, while real estate investment and construction activity have contracted sharply. The adjustment has also weighed on household balance sheets and, to some extent, intensified the decline in consumption. At the same time, local governments' land sale revenue has been severely hit, slowing infrastructure investment. The property downturn has become one of the factors slowing economic growth. The market is close to a bottom, but recovery in investment and construction still needs time.