BEIJING, October 11, 2024 - The Chinese government's recent stimulus measures have significantly impacted the country's housing market, leading to a notable increase in home sales and viewings during the National Day holiday. However, lingering uncertainty regarding Beijing's long-term economic policies continues to affect consumer confidence.
During the holiday, reported home viewings and sales surged in major cities, with new-home sales in 25 cities rising by 23% compared to the previous year. In Beijing, the number of new-home viewings nearly doubled, and sales soared by 81%. The Chinese authorities have implemented various measures, including reducing down payment requirements and mortgage rates, to stimulate the property market, which has faced substantial pressure since a crackdown on real estate developers' debt began in 2021.
Despite the positive trends, many potential buyers remain hesitant. Economic uncertainty and high property prices continue to dampen consumer enthusiasm, with some households expressing caution about making significant financial commitments. Analysts suggest that until home prices stabilize at more affordable levels, broader economic recovery may be hindered.
The volatility in the stock market, triggered by the stimulus measures, has also raised concerns about the sustainability of these economic policies. While the initial response was a sharp increase in China's benchmark index, doubts about the government's commitment to substantial fiscal stimulus have led to fluctuations in market performance.
Overall, while the stimulus measures have sparked renewed interest in the housing market, the long-term effects on consumer confidence and economic recovery remain to be seen.