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| Home prices fell for a second straight month. Apartment projects under construction in Shenzhen, China, at sunset. (Source: Reuters) |
The average new home price in 100 Chinese cities fell 0.01% in June 2023, the same as the decline in May 2023. In the first half of this year, the average home price rose 0.01% year-on-year.
"In the first quarter of 2023, market confidence was boosted by the release of pent-up demand, the market gradually picked up, and home prices appeared to be recovering. In the second quarter of 2023, the market recovery slowed down and there was not enough momentum for prices to rise," said real estate research firm China Index Academy.
China’s real estate sector has been plunged into a severe debt crisis over the past two years as many developers defaulted. Although local governments have introduced a number of measures to support the sector and the lifting of harsh anti-Covid-19 measures in December 2022 has also improved the market somewhat, the positive sentiment among investors towards the sector was short-lived.
“If policy support is limited, homebuyer confidence will be hard to improve,” said China Index Academy.
The real estate sector accounts for about a quarter of China's economy .
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