China new home prices fell 0.2% in December

58
1
China new home prices fell 0.2% in December

Dec home prices - 0.2% m m vs. 0.3% m m in November

Dec - new home prices are 2.6% m compared to 3.0% m m in November.

15 out of 70 cities reported higher prices compared to 9 in November Adds background, additional data BEIJING, January 15, Reuters - China's new home prices fell more slowly in December than a month ago, official data showed on Saturday, indicating stabilising demand due to marginal easing on financing curbs and promotions by property developers.

The average new home price in China's 70 major cities fell 0.2% in December from a month earlier in the year, a decline of 0.3% in November, according to data released by the National Bureau of Statistics. China's property market has slowed since June 2021, as regulators have stepped up their deleveraging campaign against the bloated sector, leading to defaults at some heavily indebted companies.

In December, authorities and property developers in multiple cities introduced measures to boost home sales, with local governments providing subsidies for home buyers and real estate firms offering discounts.

In 15 of 70 cities, monthly prices went up from nine cities that reported price gains in November.

The new home prices increased by 2.6% year-on-year in December, slower than the 3.0% growth recorded in November.

In a recent note, Oxford Economics analysts said that they expect central and local authorities to take measures to control defaults by property developers, such as increasing credit to the sector and changing the strict three red lines policy to curb borrowing by developers.