People visit a residential real estate sales office in Shandong province, China, 15 December 2022. House prices in 100 cities fell for the sixth straight month in December, according to a private Chinese survey.
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China’s home prices fell faster in December, reflecting continued weak demand amid rising Covid-19 cases despite a raft of supportive measures, according to a private survey on Sunday.
China’s housing market crisis has deepened this summer, with official data showing house prices, sales and investment have all fallen in recent months, adding pressure on the ailing economy.
House prices in 100 cities fell for the sixth straight month in December, falling 0.08% month-on-month after falling 0.06% in November, according to the survey by China Index Academy, one of the largest independent real estate research firms of the country.
Among the 100 cities, 68 cities saw monthly prices fall, compared with 57 in November, the survey showed.
China has stepped up support for the industry in recent weeks to ease a protracted liquidity squeeze that has hit developers and delayed the completion of many housing projects, further eroding buyer confidence. Measures included lifting a ban on raising funds through share offerings for listed real estate companies.
The real estate sector has also received a slight boost after Beijing abruptly dropped its strict zero-Covid policy in early December, which could lure consumers back to the showrooms. But the virus is now spreading largely unchecked, likely infecting millions of people every day, according to some international health experts.
“Real estate policy could continue to maintain an accommodative tone, with scope for supply-side and demand-side policy easing in 2023,” the real estate research firm said, adding “the housing market is expected to gradually stabilize over the next year.”
