BEIJING -China’s new home prices were unchanged in March from the prior month, as demand continued to remain soft despite the government’s extensive policy support to boost confidence in the fragile property sector.
The flat outcome in March was a slight improvement from February, when prices fell 0.1% month-on-month, Reuters calculations based on National Bureau of Statistics (NBS) data showed on Wednesday.
From a year earlier, prices in March were down 4.5%, a marginal improvement from a 4.8% decline in February.
Policymakers have in recent months repeatedly pledged to stabilise the debt-stricken property market, as they seek to fuel growth in an economy pressured by heightening trade tensions with the United States.
Once a major growth driver, China’s housing sector entered a prolonged downturn in 2021, with many developers defaulting on their debts and consumer confidence sinking.
With property values, sales and investment slumping, the downturn has become a significant drag on the world’s second-largest economy, necessitating the need for stronger policy responses.
NBS data also showed resale home prices fell across the board on an annual basis but saw a marginal monthly increase in the country’s Tier 1, or biggest cities, compared with February.
Property sales by floor area dropped 3.0% in the first quarter, easing from a 5.1% contraction in the first two months of the year, while investment in the sector fell 9.9%.
Chinese policymakers have rolled out support measures in recent months to prop up the property sector, such as easier access to cash for developers, cuts in home mortgage rates and relaxed rules on buying homes.
“At present and in the coming period, China’s real estate market still holds significant room for development, and efforts should be made to further unleash its market potential,” Premier Li Qiang said on Tuesday.
Purchasing unsold existing home for affordable housing is an important means to promote the stabilisation of the real estate market, Li said.
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