China new home prices tick up in Sept, ending four-month decline - survey

[beijingwalker]

China new home prices tick up in Sept, ending four-month decline - survey​

1 Oct 2023 1:04 pm
Reuters

China's new home prices rose slightly in September, breaking a four-month decline, data showed on Sunday, as developers sped up launches to take advantage of a recent slew of support measures.

Prices rose 0.05% on average from the previous month after falling since May, according to a survey by China Index Academy, a real estate research firm. Only 30 of the 100 cities surveyed reported a fall in new home prices.

The biggest month-on-month increase since October 2021 driven by developers launching new, higher quality housing projects, the firm said in a report.

Confidence in the property sector, which accounts for one-fourth of economic activity, has been hit since 2021 when Beijing cracked down on debt accumulation by developers, fuelling a debt crisis. Deepening problems in the sector this year have dragged on the world's second-biggest economy and rattled global financial markets.

China has announced a raft of measures in recent weeks to boost home-buying sentiment, including easing some borrowing rules and relaxing home purchasing curbs in some cities.

These policies have given major cities like Beijing a tiny boost in new home sales, but some worry the improvement might be short-lived and could potentially dry up demand in smaller cities.

If such policies continue to be optimised, the report said, the market in first-tier cities are likely to stabilise this quarter while recovery in smaller cities might take longer.

China Evergrande Group, the world's most indebted property developer, with more than $300 billion in liabilities, said on Thursday its founder was being investigated over suspected crimes.

China new home prices tick up in September, ending four-month decline, survey shows

China's new home prices rose slightly in September, breaking a four-month decline, data showed on Sunday, as developers sped up launches to take advantage of a recent slew of support measures.

www.reuters.com

 

[beijingwalker]

I thought China's housing market was crashing...

 

[Menthol]

I thought China's housing market was crashing...

Hard to say.

But in my opinion the current economic of China house market is unhealthy.

Yes, 90% of the population get wealthier because of expensive house prices.

But it will kill the remaining 10% who doesn't own a house, and struggling badly to own a house.

It's the math that is wrong.

 

[beijingwalker]

Hard to say.

But in my opinion the current economic of China house market is unhealthy.

Yes, 90% of the population get wealthier because of expensive house prices.

But it will kill the remaining 10% who doesn't own a house, and struggling badly to own a house.

It's the math that is wrong.

Most Chinese own at least one house, and most of the first houses in China were given by the government for free. unhealthy housing market indeed has been around for several decades which is due to too much speculation when people buy houses as a lucrative investment rather than a place to live. this long existing issue has to be fixed sooner or later anyway.

 

[S10]

That's not good. China a public housing strategy for most of its population. Housing unaffordability will further dent birth rates.