2025 has seen the biggest drop in construction of new housing since at least the year 2000, reports Caixin, which called it a “decisive end” to the country’s long expansion-driven property boom. This is based on data taken from the first 11 months of the year.
While it may be a milestone it does not necessarily mean the end of the property woes. On the other hand, a further slowdown in constructing housing may take some pressure off existing inventory.
The heart of China’s domestic economy is property, which supports many other areas of industry. The overall demographic problem of China’s population ever shrinking and growing ever greyer is more and more an issue. A return to consumer optimism is hard to envisage without some light at the end of the property tunnel.