China’s Property Market Declines in January

(Reuters) – China’s sales of new housing and prices for existing residential units continued to decline in January, according to a leading real estate research institute on Saturday.

The average price per square meter for existing residential properties fell by over 7% in January compared to a year earlier, based on a survey of markets in China’s top 100 cities, as reported by China Index Academy in their monthly report.

Property sales value by the top 100 real-estate developers decreased nearly 17% year-on-year in January, the research institute noted.

China’s residential property market, which once represented a quarter of economic output at its peak in 2021, has become a significant drag on the economy, raising concerns among households, investors, and Chinese policymakers.

In the latter months of 2024, both central and local governments in China intensified efforts to boost sentiment and encourage new home purchases through various measures, including subsidies for consumers and financing for state-owned enterprises.

Analysts surveyed by Reuters anticipate that property sales and prices in China will continue to decline this year, although at a slower pace than in 2024.