Prices of new homes in China rose slightly in May for the ninth month, a private survey showed, driven by a series of measures aimed at supporting the country’s crisis-plagued real estate sector.
The average price of new homes in 100 cities rose 0.25 percent in May, following a 0.27 percent rise in April, according to data from real estate research institute China Index Academy, released on Saturday.
China’s real estate sector, a pillar of the economy, has lurched from one crisis to another since 2021, after a regulatory crackdown on high leverage among developers triggered a liquidity crisis.
The government is working to boost housing sales or increase liquidity through a series of stimulus and easing measures.
China announced “historic” measures in mid-May to stabilize the sector, with the central bank easing mortgage rules and facilitating an additional 1 trillion yuan ($140 billion) in financing, and local governments committing to buying apartments.
Investors had hoped the measures would mark the start of more decisive government intervention to boost demand for home purchases and slow the fall in prices.
“After the implementation of the new policy, the number of viewings of some projects in major cities has increased, but it will still take time between the increase in house viewings and the resumption of transactions,” China said. Index Academy in the survey report.
“Looking ahead, the pace of market recovery still depends on how residents’ income expectations evolve. (Reporting by Shanghai and Beijing newsrooms; writing by Tom Hogue)
