China's New Home Prices Edge Up For Ninth Consecutive Month

China’s new home prices inched up in May for a ninth consecutive month, on the back of steps taken by Beijing to prop up the property sector.

The average new home price across 100 Chinese cities rose 0.25% in May, following a 0.27% gain in April, the data from real estate researcher China Index Academy showed.

China’s property sector, once a pillar of the economy, has lurched from one crisis to another since 2021 after a regulatory crackdown on high leverage among developers like Evergrande triggered a liquidity crisis.

Also on AF: China’s Manufacturing Falls in May as Property Crisis Weighs

Beijing has since struggled to boost home sales or increase liquidity and taken a series of stimulus and easing measures.

Last month, China announced “historic” steps to stabilise the sector, with the central bank easing mortgage rules and facilitating 1 trillion yuan ($140 billion) in extra funding, and local governments committing to buying apartments.

Investors hoped the measures will follow more decisive government intervention to boost homebuyer demand and slow falling home prices.

“After the implementation of the new policy, the number of visits to some core city projects has increased, but it will still take time from the increase in house viewings to a pickup in transactions,” said China Index Academy in the survey report.

“Looking to the future, the pace of market recovery still depends on changes in residents’ income expectations.”

Reuters, with additional editing by Vishakha Saxena

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Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at [email protected]