China’s Faltering Property Sector to Stabilize in 2-3 Years, Ex-PBOC Official Says

Improving sales of new homes may take six months to be translated into investment, while unsold properties remain a burden for developers, says Sheng Songcheng

The extended property downturn has become a major drag for China’s economy

China’s property industry may remain in a downward spiral for another two to three years although the ailing sector’s drag on the economy will weaken, a former central bank official said.

“The issue of the real estate industry is currently the most pressing and relatively challenging problem” in China’s economy, said Sheng Songcheng, a former director of the statistics department of the People’s Bank of China. “But it is also a problem that will certainly be resolved.”