- China to remove its zero-covid policy, scheduling 8th January for effective
- Economists predict China’s economy to stand at 4%-5.9% growth this year
- Top leaders commit to bringing back market confidence and revitalizing the real estate sector
“With the ease of travel restrictions and government commitment to bring back the market’s confidence in the real estate sector, analysts and economists show optimism for a strong rebound after a short period of contraction”
Public unrest and the slowdown of economic growth have forced China to drop its zero policies effectively from January 8th,2023, which brings relief and optimism to the world and the real estate market.
Earlier in December, the Beijing government decided to ease travel restrictions–allowing for traveling in and out of the country, effective starting from January 8th, 2023. It was after three years of its stringent zero-covid policies, which have jeopardized the business and put China in the slowest economic growth in its history.
In a survey by Nikkie Asia, which participated by experts from various companies, 17 respondents forecasted China’s economic growth to be 4.0%-4.9%, while 16 respondents predicted 5.0%-5.9% growth in 2023.
However, China’s hesitation to reopen the country isn’t the only thing that drags on its economy. The real estate market has been in a slump since 2021 when high-profile property developers fell into millions of debt, and buyers refused to pay mortgages on unfinished homes.
During the first 11 months of 2022, property sales had plunged by over 28%, whereas investment in this sector fell by 9.8%.
Notwithstanding, earlier this month at a key policy meeting, top leaders vowed to focus on boosting the economy next year – rolling out new measurements to improve the financial condition of the real estate sector and encourage the market’s confidence.
With the ease of travel restrictions and government commitment to bring back the market’s confidence in the real estate sector, analysts and economists show optimism for a strong rebound after a short period of contraction.
Written by: Kem Sreyneth