China’s real estate sector has been significantly impacted by the introduction of the three red lines policy, eventually leading to a liquidity crunch in the sector. The impact of the initial policy measures is considered to be short-lived, as the housing market downturn and developer risks could have been worse than what was expected earlier. However, more concrete measures will be needed for a substantial recovery in the sector. https://www.sganalytics.com/whitepapers/china-real-estate-in-desperate-need-of-more-policy-measures/

1. CHINA REAL ESTATE IN
DESPERATE
Need of More Policy Measures.

2. THE UNTAMED RISE IN
HOUSING
PRICES
Over the years has
resulted in unaffordable
housing for the people.

3. TIMELINE OF SOME IMPORTANT
MEASURES TAKEN TO PULL THE
REAL ESTATE SECTOR OUT OF
THE ABYSS
• CNY 300bn (~USD 44bn) support measure (August 2022)
• Guaranteed bond scheme (November 2022)
• Relaxation in the use of pre-sales money (November 2022)
• 16-point plan to boost the real estate sector (November 2022)
• CNY 1.28tr (~USD 179bn) support by China’s mega banks
(November 2022)

4. THE INDUSTRY WILL WITNESS A CONTINUED
DETERIORATION
In the key real estate indicators
when additional policy
measures are introduced.

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