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Straits Times
3 days ago
- Business
- Straits Times
China home sales slump drags on as deflation eats into incomes
The value of new-home sales from the 100 largest property companies slid 8.6 per cent from a year earlier in May. PHOTO: AFP BEIJING - China's residential property sales continued to fall in May, signalling the real estate slump is still weighing on an economy that's under pressure from deflation and trade tensions. The value of new-home sales from the 100 largest property companies slid 8.6 per cent from a year earlier to 294.6 billion yuan (S$52.8 billion), according to calculations based on preliminary data from China Real Estate Information Corp. That follows an 8.7 per cent decline in April. A truce on US tariffs has done little for the world's second-largest economy as falling prices erode corporate profits and employee incomes. That has led to suppressed demand for housing purchases, just as the effects of a stimulus blitz last September start to wear off. 'China's real estate sector hasn't reached a bottom yet,' Wang Ying, a managing director at Fitch Ratings, said last week. 'The majority of residential inventory sits in smaller cities, meaning an inflection point of the sector would only come from a broad rise of income and wealth.' The property market, accounting for roughly a quarter of economic activity at its peak, is where some 70 per cent of China's household wealth is invested. China's top officials have said that a recovery in the property sector will help to shield the country from the US tariff hikes. Yet top authorities have taken a patient approach on real estate policies, seeking the right time to issue more support. In late May, officials reiterated existing programmes for the real estate sector, including urban renewal initiatives. Join ST's Telegram channel and get the latest breaking news delivered to you.
Bloomberg
4 days ago
- Business
- Bloomberg
China Home Sales Slump Drags On as Deflation Eats Into Incomes
China's residential property sales continued to fall on in May, signaling the real estate slump is still weighing on an economy that's under pressure from deflation and trade tensions. The value of new-home sales from the 100 largest property companies slid 8.6% from a year earlier to 294.6 billion yuan ($40.9 billion), according to calculations based on preliminary data from China Real Estate Information Corp. That follows an 8.7% decline in April.
South China Morning Post
09-02-2025
- Business
- South China Morning Post
Analysts expect China property recovery in 2025 after seeing January improvement
Analysts believe a broad recovery in China's property market would come this year, after new home prices in first-tier cities rose in January, while a decline in the second-hand market slowed. New home prices in China's top-tier cities rose 0.36 per cent in January from a month earlier, according to a report released earlier this month by the China Index Academy, a real estate research firm. 'The year-on-year improvement in sales value shows [better] market sentiment, particularly among homebuyers in large cities,' said Jeff Zhang, an equity analyst at Morningstar. 'We foresee new home prices stabilising in 2025 and ticking up thereafter, but a recovery for existing home prices may take longer.' In Beijing, new home prices rose by 0.09 per cent to an average of 45,621 yuan (US$6,265) per square metre, while prices in Shanghai climbed 0.57 per cent to 57,127 yuan per square metre. On an annualised basis, new home prices in the two cities appreciated 1.2 per cent and 10.7 per cent, respectively. Transaction volume in first-tier cities fell 33 per cent in January from a month earlier to 1.52 million square metres, according to a recent report from the China Real Estate Information Corp. It said this was because businesses paused ahead of the Lunar New Year holiday in late January. But transaction volume rose 56 per cent from a year earlier thanks to a low base of comparison in the year-earlier period. Demand for premium housing in Shanghai was particularly strong, according to a January report from S&P Global, which said 3,100 homes priced at more than 30 million yuan were sold last year. It added that 80 per cent of those were new units, accounting for more than half of China's total premium home sales, it said. 'We anticipate a temporary rebound in the housing and rental markets following the Lunar New Year, as this period is traditionally a quieter time for real estate activity,' said Shi Lulu, director of Asia-Pacific corporate ratings at Fitch Ratings.
