China's New Home Price Declines Slow to 17-Month Low Amid Stimulus Efforts
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China's new home prices fell at their slowest pace in 17 months during November, according to official data released on Monday by the National Bureau of Statistics. This moderation in price declines comes as the government intensifies its efforts to stabilize the crisis-ridden property sector, reports Reuters.
New home prices dipped by 0.1% month-on-month in November, a significant improvement from the 0.5% decline recorded in October. This marks the slowest pace of decline since June 2022, based on Reuters calculations. On an annual basis, new home prices fell by 5.7%, down from a 5.9% drop in the previous month.
China's policymakers have been steadily increasing their support for the property sector in recent months, aiming to address the crisis that emerged in 2021 following a government-led crackdown on developers' leverage. This led to a severe cash shortage among developers, triggering a widespread property market downturn.
Following a Politburo meeting on December 9th and the Central Economic Work Conference on December 11-12, the Chinese leadership has reiterated its commitment to stabilizing the property market.
Among the 70 cities surveyed, month-on-month home prices rose in 17 cities in November, an increase of 10 compared to the previous month.
The government has implemented various measures to encourage homebuying, including cuts to mortgage rates and minimum down-payment ratios, along with tax incentives to reduce housing transaction costs. Major cities such as Beijing and Shanghai have since adopted these tax breaks to further stimulate housing sales.
While Beijing has registered a 0.5% month-on-month decline in home prices, Shanghai and Shenzhen have seen increases of 0.6% and 0.3%, respectively, in November.