China’s Property Sector Faces Challenges, Even as State Policies Generate Demand: Experts

There are larger forces at play behind China’s property sector woes, a financial expert told The Epoch Times.

A view of a complex of unfinished apartment buildings in Xinzheng city in Zhengzhou, China's central Henan Province, on June 20, 2023. Pedro Pardo/AFP via Getty Images

China’s recent property sector policy easing will likely generate demand, but the effect could wane within a few months as economic recovery struggles and homebuyers turn cautious, said Moody’s on Thursday, cutting the second-largest economy’s property sector outlook to negative from stable.

“While the government has recently strengthened policy support for the sector, weaker economic growth prospects and concerns over on-time project completion and delivery will continue to weigh on homebuyers’ confidence and demand for the next 6–12 months,” according to the Moody’s report.