Property market conditions are deteriorating as China faces new COVID outbreaks and continues to respond with lockdowns and other restrictions, reducing property sales. Average housing prices are now declining by 9% nationwide in Q1 2022 according to NBS data, the largest quarterly drop in history. Developers are facing a significant credit crunch from declining presales revenues. Conditions in Shenzhen offer some early hints of the scope of a potential sales rebound after lockdowns end.
