On June 20, 2023, a real estate complex is under construction in Huai’an City, Jiangsu Province, China.
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China’s new home prices edged up for a ninth consecutive month in May, a private survey showed, driven by a series of supportive measures to shore up the country’s crisis-hit real estate sector.
Data from the China Index Academy, a real estate research organization, showed on Saturday that the average price of new homes in 100 cities rose 0.25% in May from the previous quarter, after rising 0.27% in April.
Since 2021, regulatory crackdowns on developers’ high leverage have triggered a liquidity crisis, and the real estate industry, the backbone of China’s economy, has fallen into one crisis after another.
The government is trying to boost home sales or increase liquidity through a series of stimulus and easing measures.
China announced “historic” steps to stabilize the sector in mid-May, with the central bank easing mortgage rules and providing 1 trillion yuan ($140 billion) in additional funding and local governments pledging to buy apartments.
Investors hope the measures signal the beginning of more decisive government intervention to boost homebuyer demand and slow falling house prices.
The China Index Research Institute said in a survey report that “after the implementation of the new policy, the number of visits to some core city projects has increased, but it will still take time for the increase in house viewings to the rebound in transactions.”
“Looking ahead, the pace of market recovery still depends on changes in residents’ income expectations.”
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