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Chinese economy: property market shrinks at faster pace, dragging on GDP

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China's property market is shrinking at a faster pace, dragging further on the economy

The Chinese property sector is contracting at a faster pace, representing a bigger drag on the world's second-largest economy.

Home prices also dropped for the first time this year in June, and Reuters reports that many developers are having a hard time finishing pre-sold housing constructions, something that has previously resulted in a mortgage boycott among homebuyers. As the property sector accounts for around one-fifth of China's GDP, its declining health has also dragged down second-quarter growth for the country, which rose 6.3% from a year ago. This is well below the 7.1% forecast among economists.

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