Home prices in China fell at a faster rate in December 2022 due to persistently weak demand and rising Covid-19 cases, despite a slew of support measures.
Home prices in 100 urban communities succumbed to the 6th month straight in December, declining 0.08% from a month sooner in the wake of falling 0.06% in November, as per the study by China Index Academy, one of the country’s biggest free land research firms.
According to the survey, prices decreased in 68 of the cities, down from 57 in November.
This summer, official data showed that home prices, sales, and investment all fell in recent months, escalating the crisis in China’s property market and putting more pressure on the economy.
In an effort to alleviate a persistent liquidity crunch that has harmed developers and pushed back the completion of numerous housing projects, further eroding buyers’ confidence, China has increased its support for the sector in recent weeks. The actions have included removing the restriction on listed property companies raising money through equity offerings.
Since Beijing abruptly ended its zero-Covid policy at the beginning of December, the real estate industry has also seen a slight boost, which may encourage customers to return to showrooms. However, some international health professionals claim that the virus is currently spreading largely unchecked and likely infecting millions of people each day.
A real estate research company says that real estate policies may continue to be accommodative in 2023, with room for supply and demand policy easing. According to them, the housing market is anticipated to gradually stabilize next year.