During the same period, real estate sales by area dropped by 19%, while new construction areas saw a steep decline of 23.7% year-on-year. Funds raised by Chinese developers also plummeted by 22.6% compared to the previous year, indicating a severe liquidity crunch in the sector.
Despite recent policy interventions aimed at boosting real estate demand in major cities, smaller towns continue to grapple with high housing inventories and sluggish consumer confidence. This disparity highlights the urgent need for targeted economic revitalization measures in rural and regional areas.
In tandem with the real estate downturn, China's steel production fell by 1.1% year-on-year to 530.57 million metric tons in the first half of 2024. June alone witnessed a 1.3% decline in steel output compared to May, totaling 91.61 million metric tons. This decrease underscores broader economic challenges affecting China's industrial production landscape amidst global economic uncertainties.
The combination of a downturn in real estate investment and steel production reflects broader economic adjustments within China, influencing global commodity markets and signaling potential shifts in domestic policy priorities. As China navigates these challenges, attention remains focused on how future policy adjustments may impact both the real estate and industrial sectors in the coming months.
