Photo taken on May 16, 2016 shows a real estate project in Hangzhou, capital of east China's Zhejiang Province. Photo:Xinhua

The growth rate of China's real estate sales area in 2022 will likely drop to 1.7 percent from 1.9 percent, while growth in development investment will drop to 0.8 percent, according to the Annual Report on the Development of China's Real Estate released by the Chinese Academy of Social Sciences on Tuesday. 

However, the report also predicted that the sale price of real estate will maintain an annual increase of 2.8 percent under the influence of stabilization policies in the real estate sector, and national real estate transactions will gradually recover this year. 

Multiple Chinese real estate developers encountered financial difficulties and low levels of liquidity in the latter half of 2021, which largely affected market dynamics. The report noted that current financial issues among developers have been eased on the back of supportive policies, and the capital demands for homebuyers and developers have been rectified. 

The report stated that the problems within the real estate sector in 2021 were largely linked to lack of confidence in the market. In 2022, supporting reasonable housing demands will be the guiding principle of policymakers throughout the year, and the national transaction value of residential property is forecast to reach 22 trillion yuan ($3.27 trillion).

Global Times