China's June new-home prices fall by the most in 8 months as weak sentiment grips market
price gauge of newly completed homes in 70 major cities fell 0.3 per cent last month from May, faster than the 0.2 per cent decline the previous month, according to data published by the government's statistics bureau on Tuesday. That was the worst monthly drop in eight months. June's prices retreated 3.2 per cent from a year earlier.
The so-called first-tier cities of Beijing, Shenzhen and
Guangzhou – often held as the bellwether of China's economy – bore the brunt of the declines, with prices falling 0.3 per cent last month, compared with the 0.2 per cent drop in May.
Shanghai , the mainland's premier commercial city, bucked the declining trend. Prices fell 0.2 per cent in the second-tier cities comprising provincial capitals, and retraced by 0.3 per cent in the third-tier cities.
Falling prices in
Shenzhen , a technology metropolis often touted as '
China's Silicon Valley ,' underscored why the city's largest developer,
China Vanke , said it could post a first-half net loss of between 10 billion yuan (US$1.4 billion) and 12 billion yuan this year. The developer, which reported a first-half net loss of 9.85 billion yuan last year, continued to struggle with a significantly lower volume of project deliveries.
The scale model of residential buildings at a property fair in Shenzhen on October 12, 2024. Photo: Reuters
The disappointing data weighed on mainland Chinese property stocks on the Hong Kong stock exchange today, with Longfor Group retreating 3.3 per cent to HK$10.10 while China Resources Land fell 2.5 per cent to HK$28.75 in recent trading.
The number of cities recording a drop in home prices increased in June, which reflected a more urgent need to strengthen the stabilising trend of housing prices, said Yan Yuejin, vice-president of E-House China Real Estate Research Institute in Shanghai.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
2 hours ago
- South China Morning Post
In Latin America poll, China grows in appeal though US remains preferred economic ally
Public attitudes toward China in parts of Latin America have become more positive compared to recent years, even though many in the region continue to view the United States as a more important economic partner, according to a new survey by the Pew Research Centre. The survey, conducted from January 8 to April 26, involved face-to-face interviews with 3,833 adults aged 18 and older in Mexico (1,243 respondents), Brazil (1,298) and Argentina (1,292). It is part of a broader study that covers 25 countries and examines views on China's influence, leadership and global role, as well as attitudes toward the US. Thus, the field research in all three countries was begun before US President Donald Trump returned to power on January 20, but ran past his announcement of far-reaching global 'reciprocal' tariffs on April 2. Favourable views of China have increased slightly in the region since 2024. In Mexico, the share of respondents with a positive opinion of China rose to 67 per cent, from 61 per cent last year. In Brazil, it rose to 66 per cent, from 63 per cent. In Argentina, the change was more pronounced, rising to 56 per cent, from 49 per cent. That regional rise in favourability sets Latin America apart from many wealthier nations, where views of China remain overwhelmingly negative. Across the 25-country survey, the global median share expressing a positive view of China is just 36 per cent. In high-income democracies, sentiment is particularly low – only 13 per cent of adults in Japan, 30 per cent in France and 32 per cent in Britain view China favourably.
South China Morning Post
3 hours ago
- South China Morning Post
Double-edged sword: US probe into China's drone dominance is a risk, analysts say
The United States has launched investigations into imports of drones and polysilicon – two sectors where China holds a global lead – in a move that could pave the way for tariffs and give Washington leverage in trade negotiations between the world's two largest economies, analysts said. The US Bureau of Industry and Security released a document on Monday, seeking public comments as it moves forward with the investigation, which began on July 1 under 'Section 232' of the Trade Expansion Act. 'Interested parties are invited to submit written comments, data, analyses or other information pertinent to the investigation,' the notice's authors said. While the investigation does not explicitly name China, it will examine American reliance on imported unmanned aircraft systems – including drones used for commercial, industrial and military purposes – as well as polysilicon , a critical material used in solar panels and semiconductors. Beijing holds a dominant position in both sectors. Section 232 grants the US president the power to impose duties if a Department of Commerce investigation finds that certain imports threaten national security. Trump has used the law to levy tariffs on steel, aluminium and cars, and the 50 per cent copper tariff he threatened last week also came from a Section 232 probe. Alfredo Montufar-Helu, a senior China-based adviser to C-suites, said he 'wouldn't be surprised' if Washington's investigation was used to gain leverage for future trade negotiations with China. But he also cautioned that the move was a double-edged sword.
South China Morning Post
3 hours ago
- South China Morning Post
Alibaba to roll out ‘Super Saturdays' event as China's on-demand delivery market heats up
Alibaba Group Holding will roll out a programme called 'Super Saturdays' over the next 100 days to lure more consumers to its platform, while escalating a price war against Meituan and in the mainland's on-demand delivery services market. Under Alibaba's instant commerce brand Taobao Shangou , 'Super Saturdays' would offer consumers up to 188 yuan (US$26) in subsidies for the purchase and delivery of low-cost goods such as milk tea and breakfast meals, according to a report by state-owned financial newspaper Securities Times. Alibaba owns the Post. Alibaba declined to comment on the new programme. Details of the initiative were still subject to change, according to sources with knowledge of the matter. Meituan earlier rolled out coupons offering milk tea for free. on Friday said it would offer 100,000 servings of crayfish every night at a fixed price of 16.18 yuan from 6pm until 2am. Alibaba's latest programme reflected the intensifying price war in China's quick delivery services market, where aggressive discounts and freebies are the norm. While concerns have been raised about the price war's impact on the revenue of the rival firms, China's instant commerce market was forecast to surpass 2 trillion yuan (US$279 billion) in sales by 2030, according to data from the Chinese Academy of International Trade and Economic Cooperation.
