**Beijing, Shanghai See Property Plunge as Zero-Covid, Economic Gloom Deepen**.
**Beijing, China** – Home sales in Beijing and Shanghai, two of China’s largest metropolises, plunged by double digits in December as the country’s zero-Covid policy and economic slowdown continue to weigh on the property market..
According to data released by the China Index Academy, new home sales in Beijing plummeted by 33% year-on-year in December, while the decline in Shanghai was even steeper at 43%. This marked the eighth consecutive month of decline for both cities..
The ongoing zero-Covid policy, which involves strict lockdowns, travel restrictions, and mass testing, has disrupted economic activity and dampened consumer sentiment. The resulting economic slowdown has also reduced demand for real estate, leading to falling prices and a slowdown in construction..
In addition to the zero-Covid policy, the property market in China has also been impacted by a number of other factors, including:.
* **Tightening of lending conditions:** The Chinese government has implemented measures to curb excessive lending to the property sector, making it more difficult for developers to access financing..
* **Falling consumer confidence:** The economic slowdown and uncertainty about the future have eroded consumer confidence, making people less likely to make large purchases such as homes..
* **Oversupply of housing:** There is a structural oversupply of housing in many Chinese cities, particularly in smaller markets, which is putting downward pressure on prices..
The decline in property sales has had a ripple effect on other sectors of the Chinese economy. Construction, which accounts for a significant portion of GDP, has slowed down as developers scale back their projects. This has led to job losses and a reduction in demand for building materials..
The Chinese government is aware of the challenges facing the property market and has taken steps to address the issue. In November, the central bank announced a loosening of monetary policy, including a cut in the key interest rate. The government has also encouraged local authorities to provide support to developers and homebuyers..
However, it remains unclear whether these measures will be enough to stabilize the property market. The zero-Covid policy continues to cast a shadow over the economy, and the economic outlook remains uncertain. As a result, it is likely that the property market will continue to face challenges in the coming months..
**Impact on Global Economy**.
The slowdown in China’s property market could have implications for the global economy. China is the world’s second-largest economy and a major consumer of commodities. A prolonged downturn in the property sector could lead to a decrease in demand for raw materials and other goods, potentially affecting global economic growth..
**Conclusion**.
The plunge in property sales in Beijing and Shanghai is a reflection of the challenges facing the Chinese economy. The zero-Covid policy and economic slowdown have dampened consumer sentiment and reduced demand for real estate. It remains to be seen whether the government’s measures to support the property market will be effective, but the outlook for the sector remains uncertain, with potential implications for the global economy..
