The National Bureau of Statistics (NBS) reported on Wednesday that China’s property sector shrinked down 5.1% in 2022 from the previous year, pushing more pressure on policymakers to recover the sluggish in 2023.
In the fourth quarter, the value added in the industry fell 7.2% compared with the previous year, following a 4.2% contraction shown in the third quarter, according to NBS data; the data suggested that the real estate market was a major drag on the economy last year.
In 2022, China’s economy shrank to the lowest rate in nearly half a century, caused by Covid-19 outbreak and pandemic controls. Although there was an effort to invest in real estate, it still dropped 10.0% from last year.
The authorities have launched policies to support homebuyers and property developers as they have tried to ease a long-running liquidity squeeze of the industry that has paused the completion of many housing projects.