Ex-PBoC official: China’s property downturn may continue for two more years

The People’s Bank of China's (PBoC) former director Sheng Songchen said on Saturday at a forum in Shanghai that the property downturn in China may continue for two more years before gaining stability, per Bloomberg.

Key quotes

“New-home sales nationwide will likely shrink by another 50 million square meters both in 2024 and 2025.”

“2025 annual total will plateau around 850 million square meters.”

“There were some 'green shoots' appearing in November and December, such as the pace of sales decline moderating by a half in 2023 from a year earlier.”

Market reaction

At the time of writing, AUD/USD is holding lower ground near 0.6681, losing 0.03% on the day.