Real Estate

China New Home Prices Fall as Authorities Try to Spur Demand

 

New home prices in China in May slipped 0.1% month-on-month, official data showed on Thursday.

The figure was recorded from average new-home prices in 70 major cities.

May’s decline followed a 0.2% fall in April, according to Reuters calculations based on National Bureau of Statistics data.

Among the 70 large and medium-sized cities, 46 saw a year-on-year decrease in prices for new homes, up from 39 in April, said Sheng Guoqing, chief statistician for cities at the bureau.

China’s property sector, a pillar of growth, faltered last year and deteriorated further in recent months and authorities are moving to spur home demand that was hit by Covid-19 curbs in some of the country’s biggest cities.

China’s home loans are poised to pick up after targeted easing measures, according to S&P Global.

The country’s latest measures to help homebuyers are designed to spur mortgage demand while ring-fencing banks from the default risk of builders.

“Growth in home loans, which account for about one-fifth of total bank loans in China, is set to rebound after a slowdown in recent months,” S&P said.

“The government has eased mortgage costs through cuts of interest rates, relaxed some rules on ownership of multiple properties and urged banks to lend more to homebuyers.”

 

  • Reuters, with additional editing by George Russell

 

 

READ MORE:

Hong Kong Private Home Prices Bounce Back in April

HDFC Bank Raises Home Loan Rate – Times of India

Some China Banks ‘Told To Issue More Housing Project Loans’

 

George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

Recent Posts

Yellen: China’s Green Energy Push a Threat to Global Jobs – AP

US Treasury Secretary Janet Yellen has accused China of ‘distorting prices’ with its increased green…

25 mins ago

Yen Fears Drag on Nikkei, Hang Seng Lifted by Policy Bets

Japan’s plunging currency and the threat of BoJ intervention sent Tokyo’s soaraway benchmark downwards

1 hour ago

China Keen For Tech Innovation to Drive Economic Growth

China will make tech innovation a focus of economic growth and aims to help drive…

2 hours ago

Investors Suspect Beijing Behind Controlled Yuan Decline

The currencies of China's trading partners have weakened faster than the yuan recently, eroding the…

18 hours ago

Shimao Bondholders Group to Vote Against Debt Revamp Plan

The creditors’ opposition to the proposal could be a major problem for the ailing property…

20 hours ago

China’s Country Garden ‘Hires Kroll For Liquidation Assessment’

Sources say China's biggest developer, which went into default in October with debts of $190…

23 hours ago