China’s property woes showed no sign of respite at the end of 2022 with home prices falling at an accelerating rate in December, survey figures showed.
Home prices in 100 cities fell for the sixth month in a row last month, declining 0.08% from a month earlier after falling 0.06% in November, according to the survey by the China Index Academy, one of the country’s largest independent real estate research firms.
Among the 100 cities, 68 cities posted a fall in monthly prices, compared with 57 in November, the survey showed.
China has in recent weeks ramped up support for the industry in a bid to relieve a long-running liquidity squeeze that has hit developers and delayed completion of many housing projects, further undermining buyers’ confidence.
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The moves have included lifting a ban on fundraising via equity offerings for listed property firms.
The property sector has also got a slight boost after Beijing abruptly dropped its strict zero-Covid policy in early December, which could lure consumers back to showrooms.
But the virus is now spreading largely unchecked and likely infecting millions of people a day, according to some international health experts.
“Real estate policies may continue to maintain an accommodative tone with room for policy easing on the supply and demand side in 2023,” said the real estate research firm, adding “the housing market is expected to stabilise gradually next year.”
- Reuters with additional editing by Sean O’Meara
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