China's New Home Prices Hold Steady in January

 

Official data released on Wednesday shows that new home prices in China remained stable in January, reflecting the continued challenges facing the real estate market despite ongoing government efforts to prop up it.

 

According to figures from the National Bureau of Statistics, prices have remained flat for the second consecutive month. Compared to the same period last year, new home prices dropped by 5.0%, an improvement from the 5.3% decline seen in December.

 

The data also revealed that the total unsold new homes at the end of January 2024 reached 390.88 million square meters, up 16.2% from the previous year. Additionally, new construction starts, measured by floor area, dropped 23.0% year-on-year.

 

A recent Moody's report suggests that the path to a sustainable recovery in the real estate market remains uncertain, despite some positive signs.

Moody's analysts commented, "If there are positive income projections, stable or rising home price expectations, and low inventory levels, indicating strong supply management, we expect a more sustainable rebound in real estate sales."

 

After the market downturn in 2021, policymakers increased efforts to support China's real estate sector. The crisis, triggered by government measures to limit developer leverage, left many unable to pay off debts and complete pre-sold homes, leading to a sharp fall in home sales and a loss of consumer confidence.

In its recent monetary policy implementation report, the central bank added real estate to the list of key sectors that will receive more credit support.