Morgan Stanley’s recent survey has revealed a high level of skepticism among Chinese households towards the country’s housing market, despite the implementation of property easing measures by Beijing. The poll included around 2,000 consumers and found over 80% of households hesitant or unsure about entering the market.
The reluctance stems from weak income expectations and an ongoing debt crisis among developers. Even though Beijing has introduced measures such as lower mortgage payments to stimulate the market, many households remain cautious due to these underlying economic concerns.
On a more positive note, homeowners are showing a sequential pickup in spending intentions. The survey noted an increasing trend of consumers investing their savings and consuming more, a result of the reduced mortgage rates. This could potentially indicate a growing confidence in the country’s overall economy, despite the hesitancy towards the housing market specifically.
However, when it comes to future home prices, the survey found that 42% of respondents anticipate a decrease over the next year. This is significantly higher than the 23% expecting an increase in home prices during the same period. This suggests that while there may be increased consumer spending in other areas, confidence in the housing market remains low for the foreseeable future.
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