Prices are lofty, the debt of developers is too high and households are sinking too much wealth into property
Save time by listening to our audio articles as you multitaskIn an aggressive attempt to cure these maladies, China’s policymakers have created several others. The flow of finance to property developers has slowed abruptly since the government imposed limits on their borrowing in 2020, forcing dozens into default. This has reduced the pace of construction for flats, many of which were sold in advance.
It is not clear this will be enough to solve developers’ woes. The measures will do more to increase the flow of finance and pace of construction than to revive sales. In the first ten months of this year, China’s property firms sold 941m square metres of residential floor space, a quarter less than in the same period last year. Boosting this figure would do wonders for these firms’ balance-sheets and their creditors’ chances of repayment.
Demand for living space in China’s cities will grow more slowly in the years ahead. Having torn down so many old buildings in recent years, China’s bulldozers are running out of targets. The proportion of urban homes without an independent toilet fell from 32% in 2000 to 15% in 2015, point out Mr Wu and Ms Xu.
Danmark Seneste Nyt, Danmark Overskrifter
Similar News:Du kan også læse nyheder, der ligner denne, som vi har indsamlet fra andre nyhedskilder.
Steel Prices Face Further Downward Pressure As Extra Supply Looms | OilPrice.comPrices of hot rolled coil are now at their lowest levels since November 2020, and while steel prices in general resume their downward trend, plate prices are holding up
Læs mere »
Northern Ireland house prices still rising, figures showHouse prices in Northern Ireland have continued to rise despite the economic slowdown and increased by 4.1% between the second and third quarter of 2022 🏡 📈
Læs mere »
UK faces tough winter as prices stay highPrices will stay very high for a few months at least, as it takes some time for global factors to feed into everyday prices.
Læs mere »
Green ammonia: high energy prices hint at proof of concept\n\t\t\tLet our global subject matter experts broaden your perspective with timely insights and opinions you\n\t\t\tcan’t find anywhere else.\n\t\t
Læs mere »
Winter Wonderland organisers justify 'expensive' pricesWhile Winter Wonderland is free to attend, there are charges for attractions such as the skating rink, big wheel, and entry to the Ice Bar
Læs mere »
UK inflation rate calculator: How much are prices rising for you?Use our calculator to find out how much the cost of living is going up in your household.
Læs mere »