China’s November new home prices climb but resale values extend declines: survey

[BEIJING] China’s new home prices rose at a faster pace in November, but prices in the secondary market declined further in a sign that the crisis-hit property sector has yet to bottom out, according to a private survey released on Monday (Dec 1).

New home prices grew 0.37 per cent month-on-month compared with a 0.28 per cent gain in October, according to China Index Academy, one of the country’s largest property research firms.

Resale prices declined 0.94 per cent compared with a 0.84 per cent drop the previous month.

The high volume of listings and subdued buyer expectations in the secondary market intensified downward pressure on prices towards the year-end, said the research firm.

China’s property sector has been reeling since tighter regulations sparked a 2021 liquidity crunch for real estate developers, many of which have since defaulted on debt.

Stabilising the market could boost household consumption and help reduce the economy’s heavy reliance on government-driven infrastructure investment as well as exports which have been hurt by US trade policies.

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While authorities rolled out a series of measures in the second half of 2024 to support the sector, large-scale new stimulus has been withheld this year.

China Index Academy said that any near-term policies may include easing restrictions on home purchases, lowering transaction costs, and accelerating urban village redevelopment projects to stimulate demand. REUTERS