China witnessed the fastest dip in property sales as compared to the last forecast made. Furthermore, the residential property in China is damping down this year. Hence, home buyers are remaining cautious as economists or predictors are expecting the biggest fall in home prices in the current year i.e. 2022.
According to Survey, China may experience a decline in new home prices by 1.4 percent in the year 2022. Furthermore, the economy of China is crunching since 2020 thereby increasing the number of defaulters. Precisely, the builders are struggling around to complete their projects. Therefore, the threat of non-payment by the owners is circulating around China.
Due to the Pandemic, the world’s second-largest economy is struggling and deteriorating day by day.
Moreover, several lockdowns disrupt the business activity thereby showing concerns about growth and development.
Several incompletions of projects weaken the demand of homebuyers which thereby disturbs the economic health of the country.
Several measures were taken to safeguard the economy. Nearly 200 countries stood up and introduced various measures to aid the property sector. Moreover, smaller payments and cash subsidies are provided to increase the number of house purchases.
Furthermore, Central banks also cut the lending rate of interest to diminish the cost of property prices.
China is all set to announce a stimulus package that may heal and stabilizes the economy. Furthermore, the country may take several steps to finance some developers and make sure that housing projects got completed and deliver to the buyers.
Predictors forecast that we might witness an increase in home prices but sales volume may damp down in the days ahead.
Wrap-up
The real estate market is struggling and is completely dependent on the macroeconomic condition. Hence, we may witness a fall in the prices of base metals.
What if a stimulus package is provided?
If a stimulus package is provided, then we may witness good support in base metal prices. Furthermore, we may experience a sharp upside rally in base metal prices.
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