Report: China’s Property Market Faces ‘Multi-Year Slowdown’

While the recent crisis in China’s stock market has dominated headlines and been a source of concern because of its potential effects in the world’s second-largest economy, investors should focus instead on another sector of the country: property.

At least that is Barclays’ warning, which takes into account that real estate represents around 15% of China’s GDP, up from less than 4% since 2000. Leading this growth is residential investment spending, which is now 11% to 12% of GDP.

However, the current property downturn, while it doesn’t represent an imminent collapse, might be continued and last for several years.

“The Chinese economy remains on a glide path to slower but more sustainable growth over the next several years, though if we are right, the slope down might be a little steeper than many investors expect,” concludes the report.

 

Source: Mansion Global

http://www.mansionglobal.com/articles/7211-report–china’s-property-market-faces-’multi-year-slowdown

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