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Beijing, ChinaMarket expectations for an end to zero-Covid regime, accommodative asset policies and more stimulus measures boosted demand.
New home prices rose 0.1% month-on-month in January, compared with a 0.2% decline in December, based on Reuters calculations. national bureau of statistics (NBS) figures were released on Thursday.
More than 70 major cities surveyed by the NBS reported increases in new home prices last month, with prices in 36 cities rising from 15 in December.
Analysts see rising home prices as a positive sign, but believe that more stimulative policies are needed to lift the currently depressed demand and lead to a longer-term recovery.
Markets expect Beijing to introduce more easing measures to revive the sector, especially during or after the much-anticipated annual parliament meeting starting in early March. “We believe that with strong policy support from both the demand and financing sides, sales will start to rebound significantly from the end of the second quarter,” said Zhou Hao, chief economist at Guotai Junyan. Any initial bounce would be positive for the growth outlook. Will happen.” international,
The property sector, once the engine of the world’s second largest economy, has been troubled by fragile demand and rising loan defaults by developers.
Authorities have rolled out a flurry of aggressive stimulus measures to boost the sector since late last year, including encouraging property financing and allowing eligible cities to cut or eliminate mortgage rates for first-home buyers is included.
Sentiment improved in December, buoyed by Beijing’s COVID-19 policy U-turn and supportive measures, but the recovery has been patchy, with private surveys showing home sales by floor area down nearly 20% from a year earlier has been seen. Official sales figures will be released in mid-February.
Prices were down 1.5% year-on-year in January, the rate of decline unchanged from December.
“The crisis in China’s property sector has its roots in the poor long-term outlook for demand,” said Mark Williams, chief Asia economist at Capital Economics. “It hasn’t improved. But sales started the year down enough that a short-term cyclical recovery is likely.”
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