China’s new home prices rose in January for the first time in a year, official data showed on Thursday (February 16), as the end of the zero-COVID regime, favourable property policies and market expectations for more stimulus measures boosted demand.
New home prices in January were up 0.1 per cent month-on-month, versus a 0.2 per cent slide in December, according to Reuters calculations based on National Bureau of Statistics (NBS) data released on Thursday.
Prices dropped 1.5 per cent year-on-year, falling for the ninth consecutive month, in line with the 1.5 per cent year-on-year decline in December.
More major cities among the 70 surveyed by NBS reported increases in new home prices last month, with prices rising in 36 cities, up from 15 in December.
The property sector, once an engine of the world’s second-largest economy, has been hobbled by fragile demand and developers’ mounting debt defaults, CNA reported.
Authorities have rolled out a flurry of aggressive stimulus measures to prop up the sector since late last year, including encouraging property financing and allowing eligible cities to cut or abolish the floor on mortgage rates for first-home buyers.
Sentiment has been improving, buoyed by Beijing’s COVID-19 policy U-turn in December and supportive measures, but analysts believe more stimulative polices are needed for a strong recovery.
The market expects Beijing will roll out more easing measures to further revive the sector, especially during or after a highly-anticipated annual parliament meeting starting in early March.
