China property market shows little signs of revival despite stimulus

investing.com:

By Clare Jim and Liangping Gao

HONG KONG/BEIJING (Reuters) — China's troubled property market is showing little signs of a recovery in the short term despite a series of government stimulus measures to help revive activity in the sector which makes up a quarter of the nation's economic output.

Homebuyers, wary of the uncertain economic outlook, have remained on the sidelines, while property developers and agents said sales were still soft following a short-lived burst of activity in major cities like Beijing and Shenzhen.

Beijing resident Daniel Song, who was given 3 million yuan ($410,043) by his parents in the beginning of the year to buy an apartment, recently gave up on the idea, concerned about his income security.

«I am not sure about my career future in today's economic situation,» said the 28 year-old computer programmer.

China has quickened the pace of policy stimulus in recent weeks amid a deepening debt crisis in the sector, highlighted by the severe liquidity troubles in China Evergrande (HK:3333) Group and Country Garden.

But the support measures have yet to have any notable impact among buyers still grappling with low confidence. China's new home prices fell for the third straight month in September, down 0.2% from August, a traditionally peak home buying period, official data showed on Thursday.

Separate figures this week also showed property sales and investment extended double-digit declines, down 19.8% and 18.7% respectively, in a sign the world's second-biggest economy is not out of the woods yet despite better-than-expected headline gross domestic product data.

Much of the easing policies have lowered the buying costs, but done little to create new demand, realtor Centaline China CEO Andy Lee said.