New Homes and Second-Hand Homes: Analyzing China's Property Market Recovery
Current Trends in New Homes and Second-Hand Homes
New homes and second-hand homes in China are experiencing ongoing challenges, as evidenced by the continued declines in property prices across the nation. July marked the 14th consecutive month of home price decline, with new homes in 70 cities falling 0.6% month-on-month, and second-hand homes down 0.8%.
Economic Impact and Policy Responses
Once a significant contributor to China's GDP, the property sector has become a weight on the economy due to a deleverage campaign targeting homebuilders. Local governments have initiated various measures, including a 300 billion yuan relending facility to assist developers and enhance local home sales.
- Beijing: New home prices down 0.5%
- Guangzhou: New home prices down 0.8%, second-hand down 0.9%
- Shenzhen: New home prices down 0.9%, second-hand down 1.2%
- Shanghai: An exception with slight growth in both new and second-hand prices
Experts suggest the government’s recent policies have provided marginal improvements but emphasize that more robust measures are needed to stimulate demand.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.