Weekend: Ex-PBoC official says China’s property downturn may continue for two more years

Sheng Songcheng is a former director of the People’s Bank of China’s statistics and analysis department. He was speaking at a forum in Shanghai on Saturday.Said that the property downturn in China is likely to persist for two more years. It will begin to regain stability after that. New-home sales nationwide will likely shrink by another 50 million square meters both in 2024 and 20252025 annual total will plateau around 850 million square metersthere were some 'green shoots' appearing in November and December, such as the pace of sales decline moderating by a half in 2023 from a year earlierInfo comes via Bloomberg (gated).--The recent events in the property sector in China include:the slide in Chinese home sales accelerated in Decemberauthorities have rolled out more support measures, such as relaxing homebuying curbs in major citiesThe property sector is (was) a key growth engine for the economy, but in the past three years its been a drag, and has also contributed to heightened financial risks due to the unprecedented wave of developer defaults. This article was written by Eamonn Sheridan at www.forexlive.com.