What’s new: China’s housing prices rose in February for the first time in 18 months, adding to signs of improvement in the ailing market as supportive polities start to show effects.
New home prices in 70 major Chinese cities, excluding subsidized housing, rose 0.3% year-on-year after holding unchanged in January, the National Bureau of Statistics (NBS) reported Thursday. Prices of pre-owned homes increased 0.1% in February from a year earlier, NBS data showed.
A total of 55 cities experienced price gains for new housing in February, compared with 36 in January. Forty cities recorded price increases for pre-owned homes, up from 27 a month ago, according to the NBS.
The context: Home prices in China were stuck in a downward trend since September 2021 as the industry was hit by a spreading liquidity crunch and weaker consumer sentiment.
The housing market has shown signs of recovery this year after the protracted downturn as a series of government policies take effect. Authorities have rolled out measures over the past year to support the real estate market such as relaxing restrictions on home buyers and providing easier access to funds for developers to complete stalled projects.
NBS data released Wednesday showed that the decline in housing investment and sales slowed during the first two months this year.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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