China Housing Rebound Fizzling Shows Risks to Economic Recovery

  • High-frequency data suggests a short-lived housing recovery
  • Waning property recovery may limit China’s growth this year

Residential buildings under construction in Beijing in March.

Photographer: Qilai Shen/Bloomberg
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China’s housing market sales is regressing after a brief recovery, underscoring the challenges the world’s second-largest economy is facing.

Signs of weakness are emerging after housing sales and prices recovered briefly following a historical slump of about 18 months. China’s property sector is key for the economic growth outlook this year, as it accounts for about 20% of the country’s gross domestic product after including related industries.