New Home Prices in China Rise

BEIJING (Reuters) – Prices of new homes in China rose at a slightly faster pace in December, according to a private survey on Wednesday. This increase comes as the crisis-hit property sector struggles to recover, despite government support policies.

The average price of new homes across 100 cities rose by 0.37% from the previous month, slightly higher than November’s 0.36% increase, as reported by the property researcher China Index Academy.

Year-on-year, the average price increased by 2.68% in December, compared to 2.40% growth in the prior month.

Official home price data will be released by China’s statistics bureau on Jan. 17.

In recent months, Chinese policymakers have intensified efforts to rejuvenate the property sector, which collapsed in 2021 following a government-led initiative to reduce the debt of developers, leaving many cash-strapped. Since September, measures to stimulate homebuying have included cutting mortgage rates, lowering minimum down-payments, and providing tax incentives.