International credit rating agencies Standard & Poor's (S&P) and Fitch have both downgraded their outlooks for the Chinese real estate market, Bloomberg reported on the 21st (local time).
According to Bloomberg, S&P significantly revised down its forecast for China's housing sales decline from the previous 5% to over 15%. The housing sales volume is expected to fall below 10 trillion yuan (approximately 1,907 trillion won), dropping to about half of the 2021 peak.
Fitch also adjusted its housing sales forecast on the 20th from a 5?10% decrease to a 15?20% decrease this year. Bloomberg analyzed that the negative outlooks from the two credit rating agencies indicate a lack of confidence that recent Chinese government stimulus measures will revive the depressed real estate market.
Although China announced large-scale real estate measures last month, including removing the lower limit on market mortgage rates and encouraging local governments to purchase unsold homes, these efforts are insufficient to reverse the situation.
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