Some have pointed to a rise in home sales and housing starts growth in August as evidence that China’s property sector is holding up well despite the government’s curbs. But while the property sector has not crashed this year, it has cooled significantly. Home sales accelerated in August to 4.3% y/y, but this was still the second-weakest pace of growth in 20 months. Housing starts increased 5.3% y/y last month, though only after growing at double-digit rates for most of the past year. Looking ahead, we think the sector will continue to cool. Mortgage lending looks set to slow further as monetary conditions remain tight. And local media report that the property curbs which have driven a sharp fall in sales in China’s largest cities in recent months are now being expanded to include other places too.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services