Ekonomické zprávy
18.10.2021

China's plunging construction starts reminiscent of 2015 downturn

Reuters reports that data released by the National Bureau of Statistics showed that China's September new construction starts slumped for a sixth straight month, the longest spate of monthly declines since 2015.

New construction starts in September fell 13.54% from a year earlier, the third month of double-digit declines. That marks the longest downtrend since declines in March-August 2015, the last property malaise.

Property sales by floor area dropped 15.8% in September, down for a third month.

The slowdown in the sector was also underscored by a 3.5% drop in property investments by developers in September, the first monthly decline since January-February last year at the height of the COVID-19 pandemic in China.

"All the data are poor," said Zhang Dawei, chief analyst with property agency Centaline.

"Financing is hard, sales are tough, so of course, there has been no enthusiasm to build. For the first time in history, developers are encountering two blockages - blockages in sales and blockages in financing."

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