More Mainland Families On The Fence On Home Buying

The number of mainland households that decided against buying a home rose in the fourth quarter of 2022, a private survey showed, as the Covid epidemic sapped sentiment.

But more households were considering buying a home or investing in other assets in the coming three months, according to the survey by a research institute and think tank under Ant Group and the Southwestern University of Finance and Economics, in Sichuan, released on Wednesday.

The number of families opting to stay on the sidelines for property in the last quarter rose to 27.2 percent of respondents from 20.1 percent in July-October, the survey showed.

However, it also found 16.6 percent of mainland families had plans to buy a home in the coming three months, up from 7.0 percent in the July-October quarter.

Respondents' willingness to allocate money to domestic stocks, funds, and overseas asset classes also increased, the survey showed.

China's real estate sector, once a key driver of the world's second-largest economy, fell into a slump in 2022 as debt-ridden developers failed to complete stalled projects and some buyers boycotted mortgage payments.

A tentative revival was seen in the property sector in January, with home prices rising for the first time in a year, boosted by the government's aggressive support measures late last year and lower mortgage rates. (Reuters)