Real estate construction, investment expected to slow in 2020

The new construction area of real estate developers in China is expected to see a slight decline next year, while the growth of investment in property will also slow down, due to the adjustment of land supply and housing-related policies, report showed.

In 2020, the policy will continue to balance different aspects, in an effort to not use the property market to boost short-term economic growth and to also target different cities based on their own conditions, according to a report released by the China Real Estate Index System on Thursday.

The area of newly constructed real estate is expected to drop by an estimated 1.4 percent to 2.9 percent year-on-year next year. And investment growth is expected to decrease to reach 5.9 percent to 7.4 percent, which means property companies will face pressure in financing, it said.

The expansion of urbanization and growing demand for improvement in housing, especially in second- and third-tier cities, will help the decline in sales to stay at 5 percent to 6.5 percent in 2020, it showed.

According to the China Index Academy, despite the challenges, cost-effective housing of high quality will still be popular in the market, and property operators need to adjust strategies to maintain stable and continuous growth in business performance.