BEIJING, Dec 1 - Prices of new homes in China increased at a faster rate in November, according to a private survey. The average price across 100 cities rose by 0.36%, up from 0.29% in October, as reported by the China Index Academy.
Year-on-year, the average price saw a 2.40% increase, compared to 2.08% growth in the previous month. The official data for home prices is scheduled for release by China's statistics bureau on December 16.
The ongoing downturn in the property market, which constituted approximately a quarter of economic activity at its peak in 2021, continues to pose challenges for the world's second-largest economy. In response, Chinese policymakers have implemented several measures aimed at boosting market sentiment and improving affordability, including tax incentives and reduced down payment requirements.
Forecasts suggest that home prices will decline at a slower pace in the coming years before stabilizing in 2026, as the recent support measures begin to take effect. However, the sustainability of this recovery remains uncertain, according to Ying Wang, managing director of Asia-Pacific corporate ratings at Fitch.
Wang indicated that home prices are likely to keep decreasing until there is an improvement in corporate earnings, which would enhance employment and the income outlook for residents. Fitch maintains a negative credit outlook for China's real estate market through 2025.