On a year-on-year basis, 15 cities recorded an increase in new-home prices in January. In tier-1 cities, the average new-home price increased 2.1 per cent in January compared with a year earlier, while the average price in the secondary market increased 0.9 per cent.
“The home market is going to be stable and have a gradual recovery this year with the support of the 16-point rescue plan rolled out by Chinese authorities in late 2022,” Yan said, adding that improved liquidity among developers and better sentiment among homebuyers could lead to a reboot of the gloomy property market.
Chinese authorities in late November launched a series of supportive measures to rescue the property sector, including supporting developers’ financing and lowering mortgage rates for homebuyers.
Some 30 local governments in China launched various measures between December and January, from relaxing purchase restrictions to cutting the home loan rates for homebuyers, to boost demand and stimulate house sales.
“Though the country’s economy and the people’s income are gradually recovering from the impact of the Covid-19 pandemic, residents’ consumption confidence is still restrained under a complex and uncertain economic environment,” said Xu Xiaole, chief analyst with the Beike Research Institute.
“Supported by the government policies, the home market is expected to see a mild recovery rather than strong growth compared with last year, while home prices are forecast to remain stable.”
