China’s New Home Prices Fall at Fastest Pace in a Year

Post by : Sameer Saifi

China’s new home prices dropped at their fastest pace in a year in October. Official data shows that weak demand continues in the country’s property market.

According to the National Bureau of Statistics, new home prices fell 0.5% compared to September. This is the biggest monthly drop since last October. On a yearly basis, prices fell 2.2%, the same as September.

The property sector has been struggling since 2021. Sales are low and money is tight. Experts say that stabilizing the market could help people spend more and reduce China’s reliance on government projects and exports.

Despite the slowdown, Beijing has not introduced large new policies this year. Officials mainly confirmed previous measures. Analysts say the market still faces challenges such as fewer buyers in smaller cities, many resale homes, and low confidence among buyers.

Zhang Dawei, a property analyst, said that mortgage rules should be eased to help buyers feel confident. A recent survey showed that home-buying confidence fell in smaller cities by nearly 3% in October.

The resale home market is also weak. Prices in 70 cities fell both monthly and yearly. Xu Tianchen, senior economist, said the drop in second-hand home prices is reaching a critical level.

China’s property market slowdown shows that the government may need stronger measures soon to support buyers and stabilize the sector.

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