New Home Prices in China

BEIJING (Reuters) – Prices of new homes in China rose at a slower pace in August, according to a private survey released on Sunday. The crisis-hit property sector is struggling to find its bottom after numerous supportive policies.

The average price for new homes across 100 cities edged up by 0.11% from July, down from July’s 0.13% increase, based on data from property researcher China Index Academy.

China’s property sector, a pillar of the economy, has faced multiple crises since 2021, starting with a regulatory crackdown on high leverage among developers that triggered a liquidity crisis.

Despite a series of stimulus and easing measures from local policymakers, sales and liquidity have yet to improve significantly. In August, 35 cities reported higher home prices, down from 38 in July.

As the property sector enters the traditional peak season of ‘Golden September and Silver October‘, real estate developers are expected to increase efforts to promote sales. The China Index Academy noted that, coupled with the effective implementation of supportive policies, market activity in core cities is projected to see a slight rebound in the short term.