China’s real estate sector continues its years-long decline, with house prices recording a new low.
Data from China’s National Bureau of Statistics showed that the overall market is still in a generally downward trend, and buyer confidence is still very weak.
According to the data, new home prices fell by 0.3% last January, compared to a decline of 0.4% in December 2023.
According to the data, across 70 cities, Shanghai witnessed the largest increase on a monthly basis in the level of house prices at 0.4%, while on an annual basis, Chinese house prices fell by 0.7% in the largest decline in 10 months.
It is noteworthy that the real estate market is the backbone of the Chinese economy, and the main source of investment for many Chinese families, and the Chinese real estate sector has been suffering from a severe shortage of liquidity since late 2021 when the “Evergrande” group collapsed, and its collapse caused a series of debt defaults.
China is intensifying measures aimed at stopping the real estate deflation, including requiring state-owned banks to enhance lending for residential projects, and it also reduced the main interest rate on five-year loans by 25 basis points to 3.95 percent from 4.20.
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