Analysis: How China’s Property Slump Has Impacted the Economy

China’s real estate market has suffered declines in sales, investment and prices since 2021. But just how deep is the industry’s slump, and how much does it still matter to China’s economy?

Overall, real estate’s contribution to GDP has fallen, and the year-on-year declines of some indicators, such as sales, have recently narrowed. On the surface, these might be seen as signs of turnaround. However, it is important to recognize that indicators that have been showing signs of improvement may begin to deteriorate again due to the renewed downward pressure on housing prices.