Today’s News

According to official data released on Monday, new home prices declined by just 0.1% month-on-month, an improvement from the 0.5% drop seen in October. This marks the slowest rate of decline since June 2023, based on Reuters calculations of data from the National Bureau of Statistics. On an annual basis, prices fell 5.7%, a slight improvement from the 5.9% annual drop recorded in October. 

The slowdown in price declines comes after China’s policymakers intensified efforts to revive the country’s struggling property market. The sector has been in turmoil since 2021, following a government crackdown on developers’ leverage, which left many firms short on cash. 

In a December 9 meeting of the Politburo and at the Central Economic Work Conference held from December 11-12, China’s top leadership reaffirmed their commitment to stabilizing the property market. Their strategy included several homebuyer-friendly measures, such as reducing mortgage rates, cutting minimum down-payment requirements, and offering tax incentives to lower housing transaction costs. 

These efforts have begun to bear fruit, with price movements varying across major cities. Among the 70 cities surveyed, 17 reported month-on-month price increases, up from just 7 in the previous month. In China’s largest cities, Shanghai and Shenzhen, prices rose by 0.6% and 0.3%, respectively, while Beijing saw a 0.5% decline. 

The new policies have encouraged local governments in key cities like Beijing and Shanghai to implement tax breaks to boost housing sales. These initiatives reflect a broader push to revive homebuying demand and support the property sector, which is vital for China’s overall economic stability. 

As the government continues its targeted intervention, analysts are closely watching for signs of a broader recovery in China’s real estate sector. 

Other News

Risk Disclosure:    

Securities, Futures, CFDs and other financial products involve high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding your initial investment could incur within a short period of time.    

Please make sure you fully understand the risks of trading with the respective financial instrument before engaging in any transactions with us. You should seek independent professional advice if you do not understand the risks explained herein.   

Disclaimer:    

This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.   

The above strategies reflect only the analysts’ opinions and are for reference only. They should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction. Doo Prime does not guarantee the accuracy or completeness of this report and assumes no responsibility for any losses resulting from the use of this report. Do not rely on this report to replace your independent judgment. The market is risky, and investments should be made with caution.