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China’s resale housing market weakened further in June, with average resale home prices across 100 cities recording a steeper monthly decline than in the previous month, according to data from the China Index Academy. The continued fall reflects weak buyer confidence and the prolonged downturn in the country’s property sector. While new home prices remained stable with modest monthly growth, analysts expect authorities to continue introducing measures to support both housing demand and supply as new home sales are likely to remain under pressure in the near term.
China’s resale home prices declined at a faster pace in June, highlighting the continued challenges facing the country’s property market. According to the China Index Academy, one of China’s largest real estate research firms, average resale home prices across 100 cities fell 0.42% month-on-month in June, compared to a 0.32% decline recorded in May.
In contrast, the new home market remained relatively stable. Average new home prices increased 0.16% month-on-month in June, maintaining the same growth rate seen in May. The data indicates that while the primary housing market has shown some resilience, the secondary housing segment continues to struggle with weak demand and cautious buyer sentiment.
The slowdown comes as China's real estate sector continues to face the effects of a prolonged downturn that began after several developers experienced liquidity and debt issues. The sector, which has long been a key contributor to the country's economic growth, has remained under pressure despite multiple rounds of government support measures introduced over the past few years.
According to the China Index Academy, housing policies during the second half of the year are expected to continue focusing on both demand-side and supply-side support. However, the firm believes new home sales are likely to remain under pressure in the near term, suggesting that a broad-based recovery in the housing market may still take time.
The Chinese government has introduced several measures over the past year, including easing home purchase restrictions, reducing mortgage costs, and providing financial support to developers and local governments to stabilise the property sector. Despite these efforts, consumer confidence and housing demand have remained subdued, particularly in the resale market.
Source Reuters
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