China’s real estate sector has accelerated its recovery trend as pent-up demand shows signs of release and indicators point to expanding sales and property financing, China Media Group (CMG) reported on Monday. The CMG article, citing information obtained from “financial management department and various banks”, said that China’s economic stabilizing policies have shown their effects while the COVID-19 situation eased. Both real estate developers and buyers borrowed more money from banks in June. Outstanding property development loans were estimated to have increase by 100 billion yuan ($14.85 billion) from May, while personal housing loans grew by 150 billion yuan. In recent years, China’s real estate market hit some headwinds after more than a decade of fast expansion.
Weighed by soft demand following the coronavirus pandemic, the sector suffered from liquidity stress after the central government started a de-leveraging campaign in 2020 to control borrowing among highly-indebted developers. Despite a series of policy measures to spur stable growth, the embattled sector still saw investments dropping by 5.4 percent year-on-year in the first half of 2022, according to National Bureau of Statistics. – CGTN
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