China's Property Boom May Be Over - China Is Starting To See Money Head Abroad At An Increasing Rate

25th October 2022

An interesting blog today from Notayesmanseconomics's Blog.

Over the course of this year we have become increasingly concerned about the property sector in China and the implications for the rest of the economy. Yesterday brought us more news on that front.

BEIJING, Oct 24 (Reuters) - China's September new home prices fell for the second straight month as mortgage boycotts, a heightened debt crisis and COVID-19 curbs weighed on homebuyers' sentiment.

New home prices in September fell 0.2% month-on-month after a 0.3% drop in August, according to Reuters calculations based on National Bureau of Statistics (NBS) data released on Monday.

On a year-on-year basis, new home prices in September declined at the fastest pace since August 2015, falling 1.5% after a 1.3% decline in August.

The housing pyramid was built on the promise of higher prices as everyone involved sang along with Hot Chocolate.

Everyone's a winner, baby, that's no lie (yes, no lie)
You never fail to satisfy (satisfy)

The problem now is that there are losers and we are seeing that play out in the arena of mortgage boycotts and debt problems. Also we are left wondering if we are being told the full truth about the price falls?

Exodus?

According to the Financial Times the political shenanigans over the weekend have led to this.

Wealthy Chinese are pulling the trigger on exit plans from their homeland as pessimism builds over the future of the world's second-largest economy under Xi Jinping and the ruling Chinese Communist party.

Read the full blog
HERE