Earlier this month, financial analysts from Japan-based Nomura Group (NMR) issued a grim report on China’s housing market: “To us, it is no longer a question of ‘if’ but rather ‘how severe’ the property market correction will be,” the report read.
Nomura—which has historically been bearish on China, as the Wall Street Journal observes—predicted that a downturn in the housing market, caused by oversupply and shrinking developer financing, could sharply impact China’s economy, perhaps even driving GDP growth to less than 6 percent in 2014.
Data released on Sunday by China’s National Bureau of Statistics show that an increasing number of major Chinese cities surveyed experienced month-on-month housing declines in April (eight cities) compared with March (four).
Hangzhou, the capital of eastern Zhejiang province, saw the steepest decline, with new-home prices dropping 0.7 percent in April. The other seven cities surveyed that reported declines were Ningbo, Wuxi, Wenzhou, Jinhua, Anqing, Ganzhou, and Huizhou.