Real estate investment in China fell 2.7% in the January-April period and hit its lowest level since the initial outbreak of Covid-19 in early 2020 as the government’s easing policies failed to revive the cooling of the real estate market.
The decline in real estate investment for the four months reversed from the 0.7% rise recorded for the January-March period.
Volume home sales, a key indicator of demand, fell 32.2% in the first four months of 2022 from a year earlier. That compares with a 25.6% drop in the January-March period, according to data released Monday by the National Bureau of Statistics.
New construction starts as measured by floor area fell 26.3% in the January-April period, from 17.5% in the first three months of the year.
China’s central bank lowered mortgage interest rates for first-time home buyers by 20 basis points on Sunday, a move aimed at reviving the struggling property market.
In the first quarter of the year, banks in many cities across China cut mortgage rates and local governments in dozens of cities took steps to ease restrictions on home buying to restore buyer confidence and stimulate the real estate market.
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