Prices in 100 Chinese cities fell for the fourth consecutive month amid strict COVID restrictions.
China’s property market continued its slump in October, with personal data showing home prices and sales falling, suggesting lackluster sentiment and a bleak outlook amid severe COVID-19 restrictions. impact on consumer confidence.
China’s real estate sector, once a pillar of growth, has slowed down sharply in the past year the result of the government’s control of developers’ excessive borrowing and the economic downturn caused by COVID-19.
Prices in 100 cities fell for the fourth straight month in October, down 0.01% month-on-month after falling 0.02% in September, according to a Tuesday survey by the Institute of Only China number (CIA), one of the country’s largest independent. real estate research firms.
Real estate sales by floor area in 100 cities fell about 20% year-on-year in October, according to a separate statement from the academy.
Analyst Chen Wenjing at the research firm said asset recovery depends on COVID containment measures and the strength of policies.
Any recovery of the property market will be delayed if the country adheres to strict COVID restrictions to quell repeated coronavirus outbreaks, Chen said. Such curbs are expected to remain in place for some time after the Communist Party Congress last month.
Despite more than 230 stimulus policies introduced by 160 local governments in September and October, including subsidies, easing of purchase restrictions and reduction of payment requirements, the decline in real estate increasingly from small cities with a net inflow of population to large cities.
Last month, new home prices in Shanghai and Shenzhen fell 0.05% and 0.32% month-on-month, respectively.
Home sales by floor area in Shanghai and Guangzhou fell 35% and 26% year-on-year, respectively.
“The wait-and-see sentiment among homebuyers remains strong for now, with COVID outbreaks in many regions further slowing the market’s recovery and previous policies have yet to take effect,” Chen said. speak.
