china’s struggling real estate industry is expected to see an lshaped recovery in the coming years placing a drag on the world’s secondlargest economy according to a research note by goldman sachs group inc the us investment bank said policy makers appear determined not to use the property sector as a shortterm stimulus tool and instead want to reduce the economy’s reliance on the industry according to a research note on sunday the country is expected to see a multiyear slowdown due to “falling demographic demand a shift in policy focus to support strategically important sectors and weaker housing affordability” goldman analysts led by wang lisheng said read more china mulls new property support package to boost economy 2 china’s property sector has avoided a collapse following three years of covid restrictions but signs of renewed weakness have emerged in the residential market the rebound in home sales slowed in may to just 67 from more than 29 in the previous two months citigroup inc also downgraded earnings estimates and price targets on some chinese property stocks citing challenging market and liquidity conditions china is working on a new basket of measures to support the property market after existing policies failed to sustain a recovery in the sector people familiar said in early june goldman analysts said they expect credit easing for new homebuyers and upgraders additional mortgage rate reduction and downpayment ratios and further relaxation in home purchase restrictions however they don’t see the government trying to “engineer an upcycle” and don’t expect “a repeat of the 201518 cashbacked shantytown renovation program” it suggests “a likely endgame for the property sector policy” which is to reduce the country’s economic and fiscal reliance on the sector step up public housing and gradually expanding property taxes to more pilot cities over the longterm it added