China's New Home Prices Plummet 4.5% in June 2024, Lowest Since 2015
China's new home prices have fallen at the fastest pace in nine years, down 4.5% from a year earlier, according to National Bureau of Statistics (NBS) data.
China Property MarketNew Home PricesNational Bureau Of StatisticsCentaline Property Agency LtdReal EstateReal EstateJul 15, 2024
Since 2021, the property market's steep downturn has led to a series of developers defaulting, leaving numerous construction sites idle. This has eroded confidence in the sector, traditionally favoured by Chinese households as a safe haven for their savings. The property sector, which at its peak accounted for a quarter of GDP, remains a major drag on the $18 trillion economy.
Authorities have rolled out a flurry of support measures, including cutting home buying costs in major cities and allowing local governments to buy some unsold apartments and turn them into affordable housing. However, analysts believe that the sector will not see a rise across the board in the future.
Property investment fell 10.1% in the first half of 2024 from a year earlier, and home sales by floor area fell 19.0%, deeper than a 20.3% slump in the first five months of the year. Markets will closely scrutinise directives from the Communist Party leadership meeting starting on Monday, where key economic issues will be discussed.
Information
The National Bureau of Statistics (NBS) is China's official statistics agency, responsible for collecting and publishing economic and social data. Centaline Property Agency Ltd is a leading property consultancy firm in China.
Centaline Property Agency Ltd is a leading property consultancy firm in China, providing market research and analysis to clients. The company has a strong track record of delivering accurate and insightful research reports, helping clients make informed decisions in the property sector.
Frequently Asked Questions
What was the percentage decline in new home prices in China in June 2024?
4.5%
How does the current property market situation in China affect the economy?
The property sector, which at its peak accounted for a quarter of GDP, remains a major drag on the $18 trillion economy.
What measures have authorities taken to support the property sector in China?
Authorities have rolled out a flurry of support measures, including cutting home buying costs in major cities and allowing local governments to buy some unsold apartments and turn them into affordable housing.
What is the impact of the property market downturn on developers in China?
Since 2021, the property market's steep downturn has led to a series of developers defaulting, leaving numerous construction sites idle.
What is the outlook for the property sector in China?
Analysts believe that the sector will not see a rise across the board in the future.
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