that caused a record-breaking slump last year, some Chinese property developers are starting to see light at the end of the tunnel, but analysts warn the sector is still on course to slow down in the long term.
Since then, availability of credit has been slashed and demand for property has fallen as a result of the economic downturn and a crisis of confidence.and has spread to other developers, who are in turn shunned by potential buyers for fear of similar setbacks. The property market experienced its"worst-ever slump" last year, with sales down 24 per cent, said Rosealea Yao of Gavekal-Dragonomics, a Beijing-based economic consultancy firm.
But after a dark year,"China's property market has shown signs of stabilising" since the beginning of 2023, according to Fitch Ratings. "This is a strong signal that the sector's long-awaited recovery is finally taking root," Shehzad Qazi, managing director of China Beige Book, a consultancy firm which tracks the Chinese economy, told AFP.
Real estate will experience"cyclical bouncebacks" but the days of rapid growth are"likely behind us", Qazi said.