The results of a survey published by Chinese real estate research firm China Index Academy showed that new home prices rose again in January, recording the fifth monthly increase in a row, and accelerated compared to December, helped by a variety of government support measures.
Average prices for new housing in 100 cities rose by 0.15% mom in January after an increase of 0.10% mom in December. The January increase was the strongest since August 2021 (when prices rose by 0.2%). The number of cities with month-on-month price growth was 49, up from 47 in December.
Over the past year, the Chinese government has announced a number of measures aimed at stimulating the real estate sector, which has suffered from an unprecedented debt crisis after a regulatory crackdown on the sector's high leverage. This week, two major cities, Shanghai and Suzhou, followed Guangzhou in easing home-buying curbs.
Meanwhile, the China Index Academy said that activity in the housing market may increase after the Lunar New Year holidays (from February 10 to 17). "Beijing and Shenzhen are expected to continue to optimize real estate market policies, while second-tier cities are likely to completely lift restrictions on home purchases," the China Index Academy added.
However, a separate study by China Index Academy showed that in January, the total sales of 100 surveyed real estate enterprises fell by 33.3% per annum, outstripping the decline a year earlier by 1.6%. The decline in sales was partly caused by the traditional low season in January, but the ongoing downward trend indicates entrenched weak sentiment among home buyers.