Today’s News
China’s new home prices fell at their slowest pace in 17 months in November, as government stimulus measures aimed at stabilizing the crisis-hit property sector began to take effect.
Image Source: Reuters
According to official data released on Monday, new home prices declined by just 0.1% month-on-month, an improvement from the 0.5% drop seen in October. This marks the slowest rate of decline since June 2023, based on Reuters calculations of data from the National Bureau of Statistics. On an annual basis, prices fell 5.7%, a slight improvement from the 5.9% annual drop recorded in October.
The slowdown in price declines comes after China’s policymakers intensified efforts to revive the country’s struggling property market. The sector has been in turmoil since 2021, following a government crackdown on developers’ leverage, which left many firms short on cash.
In a December 9 meeting of the Politburo and at the Central Economic Work Conference held from December 11-12, China’s top leadership reaffirmed their commitment to stabilizing the property market. Their strategy included several homebuyer-friendly measures, such as reducing mortgage rates, cutting minimum down-payment requirements, and offering tax incentives to lower housing transaction costs.
These efforts have begun to bear fruit, with price movements varying across major cities. Among the 70 cities surveyed, 17 reported month-on-month price increases, up from just 7 in the previous month. In China’s largest cities, Shanghai and Shenzhen, prices rose by 0.6% and 0.3%, respectively, while Beijing saw a 0.5% decline.
The new policies have encouraged local governments in key cities like Beijing and Shanghai to implement tax breaks to boost housing sales. These initiatives reflect a broader push to revive homebuying demand and support the property sector, which is vital for China’s overall economic stability.
As the government continues its targeted intervention, analysts are closely watching for signs of a broader recovery in China’s real estate sector.
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