[Mingtiandi] China’s property slump could extend into 2027 with a further 10 percent decline in home prices, as policymakers remain cautious about easing measures, according to a Goldman Sachs report released on Wednesday.
Drawing on precedents from 21 major housing busts across 15 economies globally since the 1960s, the US investment bank found that downturns typically involved a median property price drop of 30 percent over a six-year period.
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| Depending on how you calculate it, real estate in China is now between 20 and 40% below 2021 peak. Since ordinary Chinese hold a lot of property as their 'back up' wealth (they own comparatively little stock and bonds), this hurts a lot. Part of the warmth of collectivism. |
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