China’s housing market is showing signs of a rebound as the decline in home prices continues to slow down, thanks to supportive government policies aimed at boosting the economy.
The National Bureau of Statistics (NBS) reported on Tuesday that in June, prices of commercial residential properties in 70 large and medium-sized cities across the Chinese mainland fell at a slower rate compared to previous months. In the four major cities—Beijing, Shanghai, Guangzhou, and Shenzhen—new home prices dropped by 1.4 percent year-on-year, but the decline eased by 0.3 percentage points from May.
“The continuous rollout of a comprehensive package of policies has significantly improved the confidence of all parties in the market,” said Yu Xiaofen, dean of the China Housing and Real Estate Research Institute at Zhejiang University of Technology.
Shanghai stood out with a 6 percent year-on-year increase in new home prices last month, highlighting strong demand in the metropolis.
In second- and third-tier cities, new home prices declined by 3 percent and 4.6 percent respectively in June, but the rate of decline narrowed compared to previous months, indicating a positive trend.
To stimulate the housing market and cater to people’s needs, over 340 property-related policies were introduced across the country in the first half of 2023. More than 60 cities rolled out home purchase incentives and trade-in schemes to support first-time buyers and families seeking to upgrade their homes.
These measures are part of the government’s broader efforts to revive consumption and promote stable economic growth. As these policies continue to take effect, experts are optimistic about the recovery of China’s real estate market.
