The property researcher China Index Academy reported that in September, the average price of new housing in 100 cities in China increased by 0.14%, slightly accelerating compared to August (+0.11%). In annual terms, the average price of new housing increased by 1.85%.
The details of the report showed that out of 100 cities, price increases were recorded in 17 cities, which is much less compared to August (35 cities). Overall, the latest data points to a cautious buyer sentiment that has chilled the real estate market in recent years.
The market has been in a slump since 2021 after a number of cash-strapped developers defaulted on loans, leaving behind large stocks of new homes and unfinished projects. Since then, the government has announced many stimulus measures, but they have had a limited impact on demand. But last week, the central bank introduced another large-scale market support measures, including a cut in the minimum down payment ratio to 15% across all categories of housing. At the same time, experts warn that for a real change in the situation, it will be necessary to provide more fiscal financing for the purchase of unsold houses.