China’s housing prices plummet, sales will decline this year

In Global Shorts
20 5 月, 2024


The survey showed new home prices will fall by 5.0% in 2024, compared with a 0.9% drop expected in the last survey in February. Prices are likely to remain unchanged in 2025, compared with a 0.5% rise predicted in February. The poll, conducted between May 10 and 17, may only partially take into account the government support measures announced on Friday to stabilize the housing market.
Beijing has pledged up to 1 trillion yuan ($138 billion) in funding and loosened mortgage rules and local governments will buy “some” apartments, in what many analysts say is the government’s strongest move yet to turn around the industry. However, questions remain about the latest measures, particularly whether they were overly enforced and how the government can help clear out the trillions in housing inventory.
Since the real estate market fell into crisis in 2021, Chinese authorities have launched wave after wave of policy support measures to boost demand, but with little success. Property sales are likely to contract 10.0% in 2024, up from the 5.0% forecast in the previous survey, while investment is expected to fall 10.0% from the 6.1% forecast in the previous survey, the survey showed.