Local media, including the Hong Kong Economic Daily, reported on the 30th that 30% of investors are trying to reduce real estate investment in China within a year. According to a recent report released by Changjiang Commercial University in the third quarter of this year, 31.7% of respondents said they would reduce investment in the Chinese real estate market within the next year. 58.3 percent of respondents said they would invest in stocks and equity funds, down 5 percentage points from the second quarter. 73.2 percent of respondents expressed their intention to invest in safe assets such as bank financial products and principal-guaranteed funds, up 6.8 percentage points from the second quarter.
It seems that Chinese investors prefer safe assets that can keep their principal even if their profits are low, as large real estate developers such as Evergrande and Country Garden fall into default.
The report analyzed that the pessimistic outlook on housing prices is one of the important reasons for investors to take a cautious attitude toward the real estate market.
Only 47.6% of investors expected housing prices to rise in the next year in the four major front-line cities of Beijing, Shenzhen, Shanghai and Guangzhou, and in the second-tier cities of 省. This was the lowest level since Changjang Commercial University began a survey of investor intentions in 2018.
The report said the rate of willingness to invest in real estate has continued to fall since August 2020 as authorities have imposed strong real estate regulations to prevent overheating speculation.
Previously, the financial industry was much more optimistic about the real estate market than individual investors. However, the survey also showed that the financial industry turned pessimistic.
Analysts say that although Chinese authorities have recently come up with various stimulus measures to revive the real estate market, investment sentiment in real estate has not improved, and the financial community is rather more negative than before.
The report suggested that monetary support policies should be strengthened to stabilize the housing real estate market in the short term.
