China's new home prices fall again as recovery remains elusive
FXI•China's new home prices fell 0.1% month on month in September, matching August's decline, while the annual drop narrowed to 2.8% from 3.0%. Property investment and home sales contracted faster in the first nine months of the year.
1. Prices remain under pressure
New home prices in China fell 0.1% month on month in September, extending a decline that began in June 2023. The annual decline narrowed to 2.8% from 3.0% in August. Prices in smaller cities continued to fall, while the biggest cities showed signs of stabilisation.
2. Uneven recovery outlook
Analysts described a housing market divided by city size, with Shanghai and other tier-one cities recovering more steadily than smaller cities. One analyst said the market could bottom out in the next 12 to 24 months; separate data showed property investment and home sales contracted faster in the first nine months of the year. The central bank and financial regulator announced mortgage-interest subsidies for eligible homebuyers in late September, with eligible homes capped at 1.5 million yuan.
