China’s new home prices rise faster in Nov. ’24

China’s new home prices accelerated their upward trajectory in November 2024, according to a private survey released on Sunday. This uptick can be attributed to a series of policy measures aimed at revitalising the struggling property market.

The average price of new homes across 100 major cities increased 0.36 per cent month-over-month, surpassing the 0.29 per cent growth recorded in October. On an annual basis, prices rose 2.40 per cent, compared to 2.08 per cent in the previous year.

The property market, which once made up a significant portion of the economy, continues to weigh down the second-largest economy in the world.

Chinese policymakers have taken steps to improve sentiment, affordability, and ease home purchase restrictions through measures like tax breaks and reduced down payments.

Analysts predict that home prices will likely stabilise in 2026 as the impact of these supportive measures gradually takes effect. However, they caution that a sustained recovery hinges on improvements in the broader economy, including corporate earnings, employment levels, and income growth.

Attribution: Reuters

Subediting: M. S. Salama