In a report published by the International Monetary Fund (IMF) on Tuesday, the financial organization highlighted an imminent slowdown in China’s real state market. The IMF has revised its growth forecast for China in 2024 to 4.8%, 0.2% points lower than its July estimate. For 2025, growth is anticipated to be 4.5%. “Conditions for the real estate market could worsen, with further price corrections taking place amid a contraction in sales and investment,” the report stated.
To combat crippling levels of inflation and a dull property market, Xi’s government introduced a slew of corrective measures in September. These include slashing benchmark interest rates and lifting restrictions on home purchases in Guangzhou and Shangai.
In October, China’s Minister of Finance, Lan Fo’an, hinted at the possibility of leveraging China’s minimal debt to inject funds into an underconfident Chinese economy. To supplement these announcements and measures, China’s housing ministry announced an expansion of its “whitelist” of real estate projects while offering quick funds to complete unfinished housing projects.
