Home prices dip 3.5% in China in May 2025
BEIJING:
China
's new home prices fell in May, extending a two-year long stagnation, official data showed on Monday, highlighting challenges in the sector despite several rounds of policy support measures.
New home prices fell 0.2% month-on-month in May after showing no growth the previous month, according to Reuters calculations based on data released by China's National Bureau of Statistics (NBS).
From a year earlier, prices fell 3.5% in May from a 4.0% decline the previous month.
Home prices are facing renewed downward pressure following the traditional peak season, driven by a combination of policy factors, market demand, regional disparities and shifting buyer sentiment, said Zhang Dawei, chief analyst at Centaline Property Agency.
The property sector, once a key driver of growth for the world's second-largest economy and accounting for roughly a quarter of economic activity at its peak, holds around 70% of Chinese household wealth.
The market entered a prolonged slump in 2021, with debt-laden developers struggling to deliver homes that buyers had already paid for, further denting consumer confidence.
After policymakers announced supportive policies in recent months as Beijing braced for extended trade tensions with the U.S., positive signs have emerged in the housing market.
A private survey by property researcher China Index Academy showed the average price of new homes across 100 cities in China climbed 0.30% in May, more than doubling from a month earlier.
Some cities in China have also been easing restrictions on housing provident fund programmes for individual mortgage loans in recent weeks, as the central bank's rate cut for the loans went into effect in early May.
Still, challenges persist. Separately, official data on Monday showed property investment fell 10.7% year-on-year, while sales by floor area dropped 2.9% in the January-May period.
Home prices are expected to fall nearly 5% this year and are set to remain stagnant in 2026, a Reuters poll showed last month.
Though major cities had shown tentative signs of recovery, home prices declined 0.2% in May, ending five consecutive months of 0.1% monthly gains.
Meanwhile, smaller Tier 3 and Tier 4 cities extended their trend of decline since May 2023, with prices falling 0.3% in May, more than April's 0.2% decrease.
Centaline's Zhang warned that without stronger policy support, the traditional June-August slowdown could see steeper price declines than April-May's fall.
He stressed the need for differentiated, city-specific policies targeting various buyer segments.
"In third- and fourth-tier cities, efforts should be intensified to support local industries and attract return migration to fundamentally address insufficient demand."
At a cabinet meeting on Friday, Chinese leaders pledged to optimise policies to boost demand, improve supply, and stabilise the property market more effectively.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
an hour ago
- Mint
India's leading rare earths producer IREL has no full-time chairperson during supply crisis
Mumbai: IREL (India) Ltd, a public sector enterprise that produces rare earth elements, does not have a full-time chairperson and managing director (CMD) since December 2024 when Deependra Singh vacated the post after nearly a decade at the helm. The vacancy comes to light at a time when Indian manufacturers, especially makers of automobiles, fear production disruptions due to China restricting the export of rare earth elements. The Indian government and industry are exploring alternatives to reduce reliance on China for these elements that go into several electronic components, particularly motors that drive electric vehicles. Currently, the position of CMD is shown as vacant on the website of IREL. S.B. Mohanty, the company's director of finance, has taken the interim charge of the CMD office. Also read: Mint Long Story: India's EV dreams caught between rare earth and a hard place The Miniratna firm had put out an advertisement inviting applications for the CMD position in February. 'Indian public sector enterprises are tardy when it comes to filling director and KMP (key managerial personnel) roles as they wait for approval from their parent ministries," said Shriram Subramanian, a corporate governance export and the managing director of proxy advisory firm InGovern. 'This needs to be resolved by a directive from the Prime Minister's Office to all ministries as it sends a wrong signal that the PSEs (public sector enterprises) don't have planned succession planning and is a disservice to the companies and their investors," he said. Emails and calls to IREL requesting comment did not elicit a response. The longstanding vacancy of the top position at IREL is another indication of India perhaps missing a trick by not capitalizing on its early lead in this sector. In 2010, India had little over 2% share of global output of rare earths, second only to China's overwhelming 95% share. But uncompetitive costs of Indian producers in the face of the Chinese juggernaut smothered the fledgling domestic rare earths industry. IREL had a Rare Earths Division at Aluva in Kerala which it had to shut in 2004 due to the lack of market competitiveness. 'Despite the importance of rare earths in meeting the zero emission target by 2070 and IREL's capability in making refined individual rare earths available for the downstream industry, the rare earth ecosystem is yet to take off in India," IREL said in its FY24 annual report, adding that the domestic market for its products was nearly non-existent. Also read: Top power authority mulls sops for critical components as China curbs rare earth supply A slower-than-expected adoption of electric vehicles globally has led to rare earths supply outstripping demand, the firm said in the annual report. This eroded the prices of rare earths. 'Despite this adverse situation, IREL has successfully made available rare earth products with quality and price on par with the leading supplying country," the company said. Originally called Indian Rare Earths Ltd, the firm was set up in 1950 under the administration of independent India's first prime minister Jawaharlal Nehru to produce thorium to support India's nuclear power needs. Over the years, the firm diversified to produce other rare earth elements, including a recently inaugurated rare earth magnet plant at Vishakhapatnam. The company had warned as early as 2010 that China's consolidation of the global rare earths supply chain could be an issue in the future for industries like smartphones, solar cells and new technology vehicles. This was after China paused supplies of rare earths to Japan following a disagreement over oceanic boundaries, prompting the island nation to strike a deal with IREL for the rare earths, Mint reported in November 2010. Also read: Automakers urge Indian govt for diplomatic outreach to China for rare earths That agreement is still in force. Last week, the Indian government asked IREL to suspend the 13-year-old agreement with Japan and to safeguard supplies for domestic needs, Reuters reported, citing two unnamed sources. The company reported a profit of ₹1,012 crore for FY24. Its revenue for the year was ₹2,104 crore.
India Today
an hour ago
- India Today
US deploys more defensive assets to Middle East amid Israel-Iran conflict
US Defence Secretary Pete Hegseth announced on Monday the deployment of additional American defensive capabilities to the Middle East to protect US forces and assets in the region as the Israel-Iran conflict escalates."Protecting US forces is our top priority, and these deployments are intended to enhance our defensive posture in the region," Hegseth said in a statement posted on the social media platform he did not specify the nature of the deployments, US officials confirmed that several key naval and air force assets have been repositioned to respond to the escalating security situation. AirNav Systems, a flight tracking website, said more than 31 US Air Force refuelling aircraft -- primarily KC-135s and KC-46s -- left the United States on Sunday, heading east. The US officials declined to comment on the number of aircraft, Reuters reported."The sudden eastward deployment of over two dozen US Air Force tankers is not business as usual. It's a clear signal of strategic readiness," said Eric Schouten at Dyami Security Intelligence."Whether it's about supporting Israel, preparing for long-range operations, logistics is key, this move shows the US is positioning itself for rapid escalation if tensions with Iran spill over."advertisementAirNav systems said US military flights had landed in Europe, including at Ramstein Air Base in Germany and airports in the United Kingdom, Estonia, and United States already has a sizeable force in the Middle East, with nearly 40,000 troops in the region, including air defence systems, fighter aircraft and warships that can help bring down the weekend, two US Navy destroyers -- the USS The Sullivans and the USS Arleigh Burke -- successfully intercepted Iranian ballistic missiles, according to a US defence official who spoke on condition of Sullivans and the USS Thomas Hudner are currently in the Mediterranean, while the Arleigh Burke has moved away from the area. The USS Carl Vinson aircraft carrier is in the Arabian Sea with the four warships in its strike group. They are not participating in the defence of USS Nimitz has been long scheduled to take over for the Carl Vinson and is heading west from the Indo-Pacific the US Air Force has moved refuelling tanker aircraft to the Middle East - critical support assets for extended air operations including evacuations and potential fighter jet strategic movements give President Donald Trump a wider range of military options amid ongoing missile exchanges between Israel and Iran. However, Trump declined to elaborate on what might prompt direct US military don't want to talk about that" Trump said during a meeting with the Canadian prime minister at the G7 summit. "They should talk, and they should talk immediately," he said, urging Iran to return to negotiations over its nuclear Iran's foreign minister, Abbas Araghchi, appeared to make a veiled outreach to the US to step in and negotiate an end to dayslong hostilities between Israel and a post on X, Araghchi wrote that if Trump is "genuine about diplomacy and interested in stopping this war, next steps are consequential."With inputs from Agencies
Time of India
2 hours ago
- Time of India
From Degrees To Delicacies: The Rise Of Educated Street Vendors in Mohali
Mohali: "Ammi jaan kehti thi, koi dhanda chota nahi hota aur dhande se bada koi dharm nahi hota." When Shah Rukh Khan's character in Raees delivered this line, it echoed beyond the screen — a gritty nod to the dignity of labour. Tired of too many ads? go ad free now Today, that sentiment is being played out on Mohali's streets, where engineering degree holders, law professionals, and even graduates pursuing BCom are trading boardrooms for pizza stalls and courtroom robes for momo counters. In Mohali's 3B2 market, this quiet but striking trend is unfolding: educated youth — armed with degrees but disillusioned by the job market — are launching food stalls. Some see it as a survival response to underemployment; others call it a bold pursuit of passion, autonomy, and purpose. Either way, it's rewriting what success looks like in modern India. As you walk the area, the enticing aroma of delicious street food fills the air. What was once a space dominated by "less formally educated" vendors is now seeing a surge of degree holders — graduates from top colleges and even former professionals from coveted jobs — running stalls that offer everything from pizzas, burgers, waffles, and bhelpuri to Chinese cuisine and healthy salads. But what's driving this shift away from the once-coveted 9-to-5? Is it the sting of rising unemployment, or a deeper pursuit of passion and independence? According to the latest Annual PLFS report (2022–23), Chandigarh's estimated unemployment rate for individuals aged 15 and above stood at 4%, higher than the national average of 3.2%. The worker population ratio (WPR) in the same age group was 45.6%, pointing to a significant segment of the population still outside the formal workforce. Tired of too many ads? go ad free now 'I pay my helper more than the stipend we get during internships' Interestingly, among the many food carts in the market stands 'Advocate Momos Wala', run by 22-year-old Yash Jain, a fourth-year BCom LLB student at Panjab University. While juggling his internship with a chartered accountant, Yash says, "These days, degrees don't hold much value." He points out the long journey required to make a mark in law — five years of study, followed by several more of low-paid practice. "By the time you become a senior advocate, you've aged too much," he says. Sharing a stark comparison, he adds, "I pay my helper more than the stipend we get during internships." He doesn't mind the judgment from others. "People talk, but we study during exams and work the rest of the time. We're managing both." As for his future? "I'll go where the opportunities are better." 'Queen of Health' Taking a healthier route, 22-year-old Simran Kaur runs a cart called 'Queen of Health', offering salads, sandwiches, wraps, and subs. Currently pursuing BCom through correspondence at Panjab University, she started her venture a year ago, driven by a desire to counter the junk food crowding the market. "Healthy food should be just as available and accessible," she says. Her earlier job at a logistics company left her unfulfilled. "You spend so much on education but earn so little. The return on investment just doesn't make sense," she explains. Her message to the youth is clear: "Instead of going abroad and doing odd jobs, why not stay here and start something of your own?" 'Work is work — what matters is being self-reliant' New to the scene are Deepanshu and his wife Jyot, who set up their bhelpuri cart just a week ago. Married six months ago, Deepanshu holds an IT diploma while Jyot, a BA graduate with a diploma in cosmetology, also freelances in the salon business. "We got bored of the salon line and decided to try something new," says Deepanshu. Their journey hasn't been smooth — facing objections from nearby vendors challenges — but they remain undeterred. "Kaam koi bhi bada chota nhi hota," Jyot says. "Doesn't matter if it's in a building or on the roadside — what matters is being self-reliant," Deepanshu said. While passion drives their cart, they agree that "money follows when you love what you do." Choosing work-life balance Then there's Baljit Singh, a BTech graduate who worked in the merchant navy for eight years before choosing family over a seafaring life. His travels took him to Venice, where he noticed authentic Neapolitan pizzas being sold on every corner. Inspired, he came home and started his own food cart — serving pizzas, waffles, and potato twisters. "The work-life balance is better here," he says, proudly keeping his setup true to its street-food roots. 'Rewriting what dignity in work looks like' While talking to TOI, Muskan Monga, a customer, said when I see someone running a food stall and then I learn they're an engineer, a law student, or a graduate from a reputed university, it flips a switch. It forces me to unlearn the bias that education must always end in a corporate office or behind a desk. It makes me respect them even more — because they're not just feeding people, they're rewriting what dignity in work looks like. Another customer, on his views on the idea that it is a waste of education if someone ends up doing a food cart job, said: Who's to say they aren't applying what they've learned? Running a food stall takes business sense, marketing skills, financial management — things you pick up through education and experience. Saying it's a waste is like saying dignity only exists in a cubicle. I'd argue the opposite — maybe they're the ones making the most out of what they've learned, just on their own terms.
