In August, the increase in new home prices in China moderated, according to a private survey released on Sunday. This slowdown highlights the ongoing challenges faced by the beleaguered property sector, which is grappling with the fallout from previous economic crises despite various supportive measures.
The average price of new homes across 100 cities saw a marginal increase of 0.11% compared to July, a deceleration from the 0.13% rise recorded the previous month, data from the China Index Academy revealed.
China’s property sector, a critical component of the nation’s economy, has been in turmoil since 2021 due to a regulatory crackdown aimed at curbing excessive debt among developers, which ignited a liquidity crisis.
Efforts by local policymakers to stimulate the market and improve liquidity through a range of measures have yet to significantly bolster sales.
In August, 35 cities reported rising home prices, a decrease from the 38 cities that saw price increases in July.
The China Index Academy noted that as the sector enters its traditionally strong period, known as the “Golden September and Silver October,” real estate developers might intensify their sales promotions.
The Academy anticipates that with the continued implementation and impact of supportive policies, a modest short-term rebound in market activity could be expected in major cities.
