China’s June home prices see little change, failing to relieve concerns of a sluggish economic recovery
- New home prices in first-tier cities wavered between a 0.4 per cent gain and 0.3 per cent loss, while the secondary market in big cities tumbled 0.7 per cent
- Fewer cities saw home price increases in June compared with May, even as local governments have rushed to support the market with new policies
June home prices in mainland China did little to relieve fears about the lacklustre post-pandemic recovery of the world’s second-largest economy.
In second-tier cities, prices of new residential units remained flat, slowing from the 0.2 per cent gain seen in May. Third-tier cities fared no better, where prices fell 0.1 per cent for the month, the official data showed.
In the secondary market, declining home prices in large cities have accelerated, falling 0.7 per cent in June compared with a 0.4 per cent slide in May. It is a reversal from the 0.2 per cent gain in April.
There were also fewer cities overall where home prices rose last month, according to the report.
“We can see that the overall market has cooled in the second quarter,” said Zhang Bo, chief analyst at 58 Anjuke Real Estate Research Institute. “In some tier-two or lower-tier cities, supply has surpassed demand, adding pressure on the housing market and leading to a fall in prices.”
“We expect more easing measures,” Zhang said.