China Home Sales Slump Persists Even as Rescue Efforts Mount

The challenge for policy makers is that China's home sales slump continued in November.

According to preliminary data from China Real Estate Information Corp., the 100 biggest real estate developers saw new- home sales fall by 25.5% in November.

China's property market has been dragging on economic growth for more than a year and a rebound in home sales is seen as crucial to fixing it. The authorities are trying to address a debt crisis by increasing financing on three fronts.

Regulators issued a 16-point plan earlier this month to spur the real estate market, while several state-owned banks pledged over a trillion dollars in funding for builders. A ban on local stock offerings by developers has been lifted, as well as a program that allows them to issue state-guaranteed bonds.

It remains to be seen if strict Covid restrictions will make home buyers more willing to splash out on properties.

Home values are falling. The data shows that real estate prices fell in October.

The social unrest was caused by China's Covid Controls. According to some market watchers, economic activity will likely weaken until at least the first quarter of next year, after contracting further in November.

Charlie, Emma, and April Ma assisted.