Property indicators seen falling faster than previous forecasts

BEIJING, Aug 30 Reuters China39;s home prices will fall at a faster pace that previously forecast this year and next, a Reuters poll showed, as support policies from Beijing struggle to help the property sector find a bottom.

The poll showed home prices would fall 8.5 in 2024, versus a 5.0 decline tipped in a previous survey in May. Prices are likely to dip 3.9 in 2025 from an unchanged figure forecast in May.

The actual source of funding for property developers has shrunk more seriously, affecting the release of housing demand, said Ma Hong, senior analyst at GDDCE Research Institution.

My house price forecasts have been revised down from May, as cash flow pressures on some big real estate companies will continue to mount, widening risk exposure and putting pressure on confidence in the property market, said Ma.

A protracted property crisis since 2021 has led to bloated inventories of unsold apartments that have crippled developers39; cash flows and weighed heavily on home prices, consumer confidence and economic activity.

Chinese policymakers have intensified efforts to support the sector, which at its peak accounted for a quarter of the economy, including reducing mortgage rates and lowering home buying costs.

The poll of 10 analysts from Aug. 2629 showed property sales likely shrank 16.0 in 2024, steeper than the 10.0 slump forecast in the previous poll, while investment was expected to fall 10.3…