China’s new home prices accelerated their decline in May, dropping at the fastest pace in nearly a decade as weak consumer confidence and an ongoing liquidity crisis continue to stifle the nation’s massive real estate market. According to data released by the National Bureau of Statistics (NBS) this week, prices in 70 major cities fell by 0.7% month-on-month, marking the sharpest contraction since October 2014.
The Long Shadow of the Property Crisis
The downturn represents a significant hurdle for Beijing, which has spent the last year attempting to stabilize a sector that once accounted for roughly a quarter of the country’s GDP. The crisis began in earnest in 2020 with the introduction of the
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