Property investment and construction starts fall sharply in China

Updated figures from China’s National Bureau of Statistics recorded a 10.6% decline in property investment in the country in 2024, after falling 10.4% year-on-year in the first 11 months.

Property sales by floor area dropped by 12.9% last year, compared with a 14.3% drop in the January to November period.

And there was a steep fall in construction starts measured by floor area of 23% in 2024, which was the same as the slide in the first 11 months. 

Nonetheless, China’s economy ended 2024 on better overall footing than expected, with 5.0% GDP growth for the full year, spurred on by government stimulus. Analysts had forecast 4.9% growth.

The economy grew 5.4% year on year in the final quarter of 2024, according to Reuters.

China has experienced a protracted property crisis, which has weighed on its construction sector, and its economy has been struggling since a post-pandemic rebound fizzled out rapidly.

Policymakers have unveiled a blitz of stimulus measures since last September to revive growth. They have pledged to do more this year as US President-elect Donald Trump, who has proposed hefty tariffs on Chinese goods, is set to return to the White House next week.

A Reuters poll found that China’s economy is expected to slow to 4.5% growth in 2025 and cool further to 4.2% in 2026 amid U.S. tariff pressures.