Chinese New House Prices YoY Actual -3.5% (Previous -4.0%)

Chinese New House Prices YoY Actual -3.5% (Previous -4.0%)

Chinese new house prices saw a year-on-year (YoY) decline of 3.5% in April 2024, marking a slight improvement from the previous month's -4.0% decrease. This data, sourced from various contributors, reflects a mixed bag of economic indicators that highlight the ongoing challenges in the Chinese property market [1].

The property slump has been a persistent issue, with investment dropping by 9.8% YoY in the first four months of 2024. However, retail sales rose by 2.3% YoY in April, indicating a more resilient consumer sector [2]. The Chinese government has been actively intervening to manage the crisis, with Beijing announcing a US$41 billion fund to buy unsold homes and ensure developers have access to financing [2].

Hangzhou, the capital of Zhejiang province, has taken aggressive steps to revive its local housing market by planning to buy homes and rent them at affordable rates. This move is part of a broader strategy to reduce inventory and boost sales [5]. Additionally, the city has removed all home-buying curbs in a move seen as the most drastic since the recent Politburo meeting [9].

The latest data suggests that the property sector is showing signs of stabilization, although recovery momentum is losing steam due to a shrinking pipeline and growing sales base. Better supply dynamics for new homes, a lower-for-longer rate outlook, and credit normalization support a constructive view of the sector [3]. However, the sector still faces challenges, with developers like Seazen Group planning to issue bonds to address debt concerns [3].

In conclusion, while there are tentative signs of stabilization in the Chinese property market, the sector continues to grapple with significant challenges. The government's interventions and local initiatives to stimulate the market are aimed at addressing these issues, but the long-term impact remains to be seen.

References:
[1] https://www.numbeo.com/property-investment/country_result.jsp?country=China
[2] https://www.scmp.com/topics/china-property
[3] https://www.marketwatch.com/story/china-developer-seazen-to-issue-bonds-to-address-debt-concerns-1d3c780a
[5] https://www.scmp.com/topics/china-property
[9] https://www.scmp.com/topics/china-property