Fitch Ratings lowered forecast of China’s new home sales in 2023

 

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Fitch Ratings now expects that mainland China’s new home sales will decline by 10% – 15% in 2023, worse than its previous forecast of a 0% – 5% decline, reflecting lower transaction volumes and renewed downward pressure on property prices.

Chinese property developers are expected to sell about 900 million square meters of residential-property space this year, lower than the 1.15 billion square meters last year, Fitch said.

The evolving Country Garden credit saga may add woes to homebuyer sentiment, with more serious impact on lower-tier cities, it said.

Notably, home prices have started to feel the impact and since June, second-hand home prices in tier-one cities have declined year over year, with the drop widening by month, it said.