Economists Think New Home Prices In China Will See Zero Growth This Year As The Country's Property Market Continues To Weaken

A Reuters poll of 12 economists highlighted the trouble weighing on China's property sector.VCG/Getty Images A Reuters poll of economists points to zero price growth for new homes in China this year. Confidence in the property sector has tanked over the last year as major developers struggle and the economy slows. The Chinese property market has been recently headlined by Evergrande's crashing stock and Country Garden's missed bond payments. China's economy hasn't rebounded from the pandemic as expected, and economists' outlook for the country's property sector is particularly bleak.In response to a Reuters poll conducted August 16-25, 12 economists said they don't expect new home prices in China to show any growth this year.The 0% forecasted annual growth is lower than the prior 1.4% gain reported in a poll in May.The real estate sector has accounted for about 20% of China's GDP over recent years, and a 2020 People's Bank of China survey found that roughly 59% of household wealth was tied to property.