China’s home prices continue decline with biggest drop in nearly 9 years as easing measures fail to buoy buyer confidence
- Prices of new homes in 70 cities fell 0.4 per cent month on month in December after a 0.3 per cent drop in November, according to official data
- Overall real estate investment dropped nearly 10 per cent in 2023, about the same as the slide in 2022
Home prices in major Chinese cities fell at the fastest pace in almost nine years in December despite easing measures meant to spur sales, underscoring the challenge of reviving a market when buyers have lost confidence.
Prices of new homes in 70 medium and large cities fell 0.4 per cent month on month in December after a 0.3 per cent drop in November, and dropped 0.9 per cent year on year, according to calculations by the Post based on data from the National Bureau of Statistics.
It was the steepest monthly decline in new-home prices since February 2015.
Prices of new homes fell last month in 62 of the tracked cities, versus 59 in November. Lived-in homes saw lower prices in all 70 cities in December for the first time since October 2014.
Tier-1 cities saw new-home prices fall 0.4 per cent from November, with Guangzhou and Shenzhen down 1 per cent and 0.9 per cent, respectively, while prices in Beijing stayed flat. Prices in Shanghai rose by 0.2 per cent.