Experts predict growth in the real estate market in China in the fourth quarter

The real estate market in China, which has suffered due to the tightening of coronavirus restrictions and lockdowns in recent months, expects a significant recovery in the fourth quarter, according to the forecast of the Shanghai business resource Itsai Global.

According to industry insiders, signs of improvement in the situation appeared already in June thanks to measures of support from the authorities and simplification of the lending process. According to the resource, the steady decline in sales recorded slowed down for the first time last month. It usually takes two or three quarters for an increase in the volume of housing loans to affect sales, because the real estate market should work better in the second half of the year. Sales growth in some regions can be expected in September and October, experts believe.
At the same time, according to Cui Guangcan, a professor at the School of Finance at Shanghai Pedagogical University, the real estate market may face a number of uncertainty factors in the second half of the year. However, they will be limited, which means there is an opportunity to control them. Thus, the expert believes, they should not affect the overall supply and demand in the market.
According to official data, the volume of sales in the Chinese real estate market in January-June 2022 fell by 28.9% year-on-year and amounted to 6.6 trillion yuan (about $976.5 billion). During this period, 689.2 million square meters of living space were sold, which is 22.2% less than in the same period last year.