Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

China new home prices rise at slower pace in February, survey shows

Published 02/29/2024, 10:53 PM
Updated 02/29/2024, 10:55 PM
© Reuters. FILE PHOTO: Residential and office buildings are seen in Beijing, China, January 10, 2017. REUTERS/Jason Lee/File Photo
USD/CNY
-

BEIJING (Reuters) - New home prices in China rose at a slightly slower pace in February versus a month earlier, a private survey showed on Friday, reflecting continued struggle in a property sector where government support measures are yet to reinvigorate sales.

The average new home price across 100 cities rose 0.14%, compared with an on-month gain of 0.15% in January, showed data from real estate researcher China Index Academy.

The number of cities that reported home price growth was nine less than in the previous month.

The southern mega-city of Shenzhen, which logged price rises in January after benefiting from easing market policies, experienced the steepest price drop in February at 0.28%.

Total sales by value among 100 real estate companies plunged 51.6% year-on-year in the first two months of the year, showed a separate China Index Academy survey.

The top three property developers in terms of sales volume were Poly Developments and Holdings Group, China Vanke and Greentown China Holdings.

China has been ramping up measures to halt a downturn in a property sector that has lurched from one extreme to the other since 2021 after a regulatory crackdown on high leverage.

Authorities in January launched a "whitelist" mechanism, asking state banks to boost lending to residential projects.

As of Feb. 28, 276 cities in 31 provinces have set up such mechanisms, with about 6,000 real estate projects proposed for financing, and commercial banks approving loans of over 200 billion yuan ($27.79 billion) for eligible projects, housing and financial regulators said on Thursday.

The government will hold its annual "Two Sessions" meetings next week, with market participants looking to the parliamentary meeting starting on 5 March for policy direction.

© Reuters. FILE PHOTO: Residential and office buildings are seen in Beijing, China, January 10, 2017. REUTERS/Jason Lee/File Photo

After Two Sessions, authorities may step up support for the property sector, including easing home purchase restrictions, lowering down payment ratios and mortgage interest rates, and increasing implementation of financing support policies for real estate enterprises, China Index Academy said.

($1 = 7.1967 Chinese yuan renminbi)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.