By Yara Abi Farraj
Share

China’s home prices hit new nine-year low in July

Property investment fell 10.2 percent annually in the January-July period, compared with a 10.1 percent drop in the first half of the year
China’s home prices hit new nine-year low in July
China has increasingly tried to support its property sector, which at its peak accounted for a quarter of the economy, by reducing mortgage rates and lowering home buying costs

China’s new home prices fell at the fastest pace in nine years in July as multiple support policies failed to stabilize prices and restore confidence in the country’s struggling property sector. China’s property crisis has significantly impacted the economy and consumers with analysts believing that Beijing’s 5 percent economic growth target for 2024 may be too ambitious even as other economic gauges have steadied.

New home prices in China declined 4.9 percent year-on-year, the sharpest fall since June 2015 and even greater than a 4.5 percent slide in June, according to Reuters calculations of National Bureau of Statistics (NBS) data.

13th consecutive monthly decline

China has increasingly tried to support its property sector, which at its peak accounted for a quarter of the economy, by reducing mortgage rates and lowering home buying costs.

On a monthly basis, China’s new home prices declined for the 13th consecutive month, reporting a 0.7 percent dip in July, and matching June’s decline.

Of the 70 cities NBS included in its survey, only two (Shanghai and Xian) saw an increase in new home prices on a monthly basis. Meanwhile, only Shanghai reported a price rise in the resale home market.

Sale values dip

Data on Thursday also revealed that property sales by floor area in the first seven months of 2024 declined by 18.6 percent annually, compared with a 19 percent decline in the first half of the year. New home sales also dipped 25.9 percent by value year-over-year during the first seven months of the year, compared with the 26.9 percent drop during the January-June period, the statistics bureau said.

Read | U.K. house prices rise 2.3 percent in July, biggest yearly increase since January: Report

Property investments fall

Property investment fell 10.2 percent annually in the January-July period, compared with a 10.1 percent drop in the first half of the year. New construction also declined 23.2 percent during the first seven months of 2024, compared with a 23.7 percent fall in the January-June period.

Meanwhile, a recent quarterly survey from China’s central bank revealed that 23.2 percent of residents believed that home prices in China would fall in Q3, a record high since data became available in 2013.
For more news on real estate, click here.
The stories on our website are intended for informational purposes only. Those with finance, investment, tax or legal content are not to be taken as financial advice or recommendation. Refer to our full disclaimer policy here.