China’s holiday home sales fall sharply against pre-Covid level: survey

CHINA’S average daily home sales by floor area were down 22 per cent compared with the May Day holiday period before Covid-19, as demand remains subdued in small and medium-sized cities, a private survey showed on Thursday (May 4).

Average daily home sales fell 28 per cent in what are known as tier-two cities during the five-day holiday from Apr 29, compared with the same period in 2019, and were down 42 per cent in tier-three and tier-four cities, according to China Index Academy, a real estate research firm.

China’s property sector, which accounts for a quarter of the economy, has shown some signs of stabilising in recent weeks with home prices rising after a sharp slump last year as developers defaulted on bonds or debts and suspended work on new projects.

But the recovery is uneven and demand in small cities remains sluggish.

The Politburo, a top decision-making body of the ruling Communist Party, said last week demand for first and improved home buyers would be supported and the delivery of new homes would be ensured.

“Stabilising homebuyers’ confidence and expectations is still the key to promoting the recovery of the property market in the near term, and property policies may continue to be optimised,” the research firm said.

“The property market is expected to stabilise in the second quarter, and nationwide home sales may increase slightly month-on-month.” REUTERS