New home prices in China fell in a promotion in December, easing restraints

File Photo: Residential and office buildings can be seen in Beijing, China, January 10, 2017. REUTERS / Jason Lee

January 15, 2022

Beijing (Reuters)-China’s new home prices fell more slowly in December than they did a month ago, with official data on Saturday showing a slight relief from funding restraints and demand for real estate developer promotions. It helped to stabilize.

Average new home prices in 70 major cities in China fell 0.2% from the previous month in December, slower than the 0.3% drop in November, according to Reuters calculations from data released by the National Bureau of Statistics (NBS). ..

China’s real estate market has slowed since June 2021 as regulators stepped up de-leveraging campaigns against bloated sectors, causing some high-debt companies to default.

However, the decline is gradual as several city authorities and real estate developers introduced measures to promote home sales in December, local governments subsidized buyers, and real estate companies offered discounts. became.

Monthly prices have risen in 15 of 70 cities from 9 cities that reported price increases in November.

Zhang Dawei, Chief Analyst at Real Estate Company Centaline, said: He said primary and secondary cities would emerge first from the recession.

New home prices in December rose 2.6% year-on-year, slower than the 3.0% rise recorded in November.

In a recent memo, Oxford Economics analysts tweaked a strict “three redline” policy introduced by central and local governments to increase credit to the sector and curb developer borrowing. He said he hopes to take steps to contain the risks from defaults by real estate developers.

As authorities increasingly emphasized the need to maintain economic stability, the payment extension granted by bondholders came to the needy developer China Ever Grande Group.

Yan Yuejin, research director at the Shanghai-based E-house China Research and Development Institute, said he expects real estate policy to ease in the first quarter given the significant economic impact of the real estate market.

“December data is a positive sign, showing that house prices haven’t fallen any further.”

(Report by Liangping Gao and Andrew Galbraith, edited by Murarikumar Anantaraman and Simon Cameron Moore)

New home prices in China fell in a promotion in December, easing restraints

Source link New home prices in China fell in a promotion in December, easing restraints

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