China New Home Prices Edge Up in June on Stimulus Measures

 

China’s new home prices jumped in June from the previous month on a wave of policy easing steps in cities to stimulate demand, a private survey showed on Friday.

New home prices in 100 cities rose 0.04%, up from a 0.03% gain in May, according to data from China Index Academy, one of the country’s largest independent real estate research firms.

China’s depressed property market has shown some signs of improvement in recent weeks.

Stimulus steps this year have mainly focused on helping home buyers, including subsidies, smaller down-payments, and relaxations on home purchases.

Major homebuilder China Vanke said this week that the property market has bottomed in the short term, with a clear month-on-month rise in sales in June, helped in part by pent-up demand following months of Covid-19 restrictions.

But chairman Yu Liang cautioned that the sector’s recovery will be take some time.

Among 100 cities surveyed by the research firm, 47 cities reported price growth in month-over-month terms, compared with more than 40 cities in May.

Prices in tier-two cities, including provincial capitals, rose 0.14%, quickening from a 0.07% uptick in May. Xian, the capital of the northwestern province of Shaanxi, registered the biggest growth of 0.68%.

“Local governments are likely to further implement city-specific policies,” like better terms for households with more than one child, the Academy said.

“The property market is expected to rebound in the second half of the year as confidence in home buying will gradually recover due to easier Covid-19 curbs and stimulus measures.”

 

• Reuters with additional editing by Jim Pollard

 

 

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