However, in contrast to the vibrant housing market, the construction industry is in the doldrums. In March, the approval volume for new residential buildings dropped by 8.8% year - on - year, far exceeding the expected 1.5% decline. The approval for apartments plunged by 14.6%, and that for detached houses decreased by 4.3%. The current annualized approval volume is much lower than the 240,000 - unit target required to alleviate the housing shortage, intensifying the supply - demand contradiction.
The contrast between the warming housing market and the shrinking construction activities highlights the structural dilemma of the industry in the high - interest - rate environment. There is an urgent need for policy adjustments to address the imbalance between the two sectors and promote the healthy development of the overall real estate industry.
