China Housing Demand to Stay at 75% Below Peak, Goldman Says

China’s demand for new homes in cities is expected to stay at 75% below its 2017 peak in the coming years due to a shrinking population and expectations of price declines that have been hurting investment interest, according to Goldman Sachs Group Inc.

“Falling population and slowing urbanization suggest decreasing demographic demand for housing,” Goldman Sachs analysts wrote in a report. “Investment demand in China could turn negative as owners sell vacant apartments.”