Analysts are increasingly confident that China’s housing market is due for a long-term decline in sales, according to the Financial Times, after reaching a high point this year.
Some economists fear that the government rolling back a subsidy programme that was central to housing sales growth in recent years will top off a list of structural factors threatening the important domestic market.
According to the FT, the programme handed out up to Rmb 2 trillion ($300 billion) in cash to households to assist with new home purchases since 2014. This included residents from underdeveloped neighbourhoods targeted for demolition, who were encouraged to buy homes in one of China’s underpopulated, smaller cities.
The market also faces a number of other wider economic factors that could weigh on property demand, including slowing migration from rural areas to cities and the introduction of an annual property tax.