Deepening concerns for Chinese economy as 64 cities report falling property prices in July
The Chinese property market’s slowdown is starting to alarm analysts, with more cities now reporting falling prices than at any time since at least a decade ago.
Official figures showed that prices were falling in 64 cities during July, against only two cities where prices were rising.
Prices in Beijing also dropped for the first time in more than two years.
Nomura analysts said that news that prices were now falling in more than 90 per cent of cities added to the pile of evidence that “structural oversupply in China’s property sector is a long-lasting issue and the largest risk to China’s economy”.
Despite the grim figures, the Shanghai stock exchange composite index ticked up during trading yesterday, closing at 2,239.47, up by 0.57 per cent.
Despite the worrying property market, Nomura economists expect that the government will reach its growth target this year.
The analysts forecast a 7.6 per cent expansion, 0.1 percentage points above the state’s goal.