Connect with us

China

What slower GDP growth means for China’s real estate market

The property market accounts a meaningful proportion of China’s GDP growth

Avatar

Published

on

China’s continued economic slowdown is reshaping the country’s real estate market, as investor confidence remains high.

Tax cuts, increased infrastructure spending and demand from foreign investors will support China’s real estate market in 2019 in the wake of slower economic growth.

China’s economy grew 6.4 percent during the last three months of 2018, the slowest pace since the global financial crisis.

The property market accounts a meaningful proportion of China’s GDP growth and Beijing has, in the past, deployed stimulus measures to support the market.

But the government’s on-going effort to deleverage the nation’s financial system has prompted a new approach.

“Real estate plays a very important role and has a direct and indirect impact on China’s GDP,”


Daniel Yao, head of research, JLL China.

To keep property prices under control, the central bank is pumping more liquidity into the economy to boost consumer confidence and the government is pushing banks to increase lending while making widespread corporate and income tax cuts.

“Previously the government would loosen real estate policy in response to a major slowdown, especially in the residential market, but they remain strict,” adds Yao.

Fresh infrastructure investment is also expected to boost the economy but the focus will be less on mega projects such as new metro lines, highways and airports, and instead on technology and telecoms infrastructure, supporting 5G networks and investment in artificial intelligence, for example.

This will create demand in the office and logistics real estate sectors. What slower GDP growth means for China’s real estate market | The Investor

Comments

China

Rapid growth in China post-COVID makes it ripe for investment

Being “first in and first out” of COVID-19, China is the only country among the G20 that is thought by the Organisation for Economic Co-operation and Development (OECD) to have increased GDP in 2020.

Avatar

Published

on

China’s economy rebounded sharply.

In January 2020 as the world began to learn of COVID-19, many market observers predicted a challenging year for Asia. While there continue to be headwinds from the health and economic crisis, Asia, and China in particular, has demonstrated comparatively advantageous resilience.

(more…)
Continue Reading

China

Mainland China is in no position to take Taiwan by force

Unlike his predecessors, Chinese President Xi Jinping has demonstrated greater intensity in the desire for reunification.

Avatar

Published

on

By

The situation across the Taiwan Strait has seemed to be on the brink of crisis since 2018. Beijing has sent numerous sorties of military aircraft to conduct exercises near Taiwan and frequently crossed the median line of the Taiwan Strait.

(more…)
Continue Reading

China

Will Biden’s America change course on China and trade?

Avatar

Published

on

US President Joe Biden’s administration must figure out how to pick up the pieces of former president Donald Trump’s controversial trade policy, especially as it relates to China.

(more…)
Continue Reading

Latest

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,634 other subscribers

Trending