The average price of new homes in 100 cities dropped down in May and June
As per the latest date from China Index Academy, prices of new homes in China came down in June. This is the second consecutive month of decline in the nation and housing sales are likely to remain less over the summer when the demand is usually at a low ebb, according to a private survey. For the first half of the year, average prices were up 0.01 per cent from the same period a year earlier and 45 cities reported price decreases.
“In the first quarter, market confidence, driven by a concentrated release of pent-up demand, gradually returned and prices appeared to be recovering,” the real estate firm that conducted the study said. “In the second quarter, the pace of market recovery slowed and there was not enough momentum for prices to rise,” it added.
Accounting for roughly a quarter of the country’s economy, China’s property sector has had a severe debt crisis for the last two years with many developers defaulting on payments as they struggle to sell apartments and raise funds. This has only increased with the government’s moves to control the ballooning debt.
Although local governments have rolled out hundreds of measures to support the sector, and the scrapping of harsh COVID curbs in December has helped somewhat, positive investor sentiment towards the sector has been short-lived. “If policy support is limited, it will be difficult for home buyer confidence to improve,” China Index Academy said.
