China’s real estate market faces mounting woes.
In addition to China Evergrande recently going into default, investment and construction in China’s property market has been in decline. And, property developers are strapped for cash.
On Dec. 14, Reuters reported that …
… [China’s] new home prices fell 0.3% month-on-month in November, the biggest decline since February 2015.
Elliott Wave International has been keeping subscribers posted on the weakness in China’s property market well before this latest news.
Here’s a quote from the September 2021 Elliott Wave Financial Forecast:
[Regarding China’s housing market], heavy losses are suddenly turning up in many formerly sizzling neighborhoods. On August 25, the South China Morning Post reported, “China’s home prices are falling in districts where the most prestigious schools are located.” In many cases they’re not just falling, they’re plunging. In Shenzhen’s Futian district, for instance, the Morning Post said a home sold for 42% less than a similar home in the same neighborhood three months ago.
The October 2021 Elliott Wave Financial Forecast followed up by saying:
On September 20, Sinic Holdings, a smaller real estate developer, suffered a one-day decline of 87%, followed by a halt in the trading of its shares. From January through July, home prices in Futian, a Shenzhen district that was once among the hottest housing markets in China, fell 15%. In the first half of August, they plunged another 29%, according to data from the Shenzhen Real Estate Intermediary Association. The decline is attributed to “educational reforms,” but we think it will be long remembered as the beginning of the end for China’s great housing boom.