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Independent Singapore
20-05-2025
- Business
- Independent Singapore
China's property market finds its footing as rate cuts and rescue funds boost confidence
BEIJING: Home prices in central China's key metropolises stayed fixed in April, indicating upward stability in the housing market after several months of turmoil and volatility, thanks to decreased borrowing charges and a heap of state-led actions to resuscitate the sector. Price movements and marginal drops Based on official figures issued by the National Bureau of Statistics, published by the latest South China Morning Post report, the latest home prices across China's four top-tier cities — Beijing, Guangzhou, Shenzhen, and Shanghai — continued to be unaffected from March, after a modest 0.1% rise in the preceding month. Second-tier cities also did not witness any price movement; however, third-tier cities suffered a 0.2% weakening. Of the first-tier cities, Beijing and Shanghai gained slight improvements of 0.1% and 0.5%, respectively. In contrast, Guangzhou and Shenzhen witnessed marginal drops of 0.2% and 0.1%. 'This marks a phased victory for cities at all levels,' said Yan Yuejin, vice-president of the E-House China Real Estate Research Institute in Shanghai. 'But sustained momentum in the second quarter will be key to maintaining this recovery.' The market's recent solidity came after a succession of easing measures. Previously this month, the People's Bank of China dropped the mortgage rate for first-time homebuyers utilising housing provident reserves to a significant low of 2.6%. Temporarily, commercial banks have permitted an astounding 6.7 trillion yuan (US$929 billion) in credits to fund approximately 16 million housing units under the régime's 'whitelist' program for economically vital undertakings. Beijing has been under a growing burden to resuscitate the real estate segment, a foundation of the Chinese economy, as export-driven seaside districts confront headwinds from shifting global demands and intensifying trade tensions, mainly with the United States. Goldman Sachs stated in a report that supplementary policy backing, including added mortgage rate slashes, extended credit for 'whitelist' ventures, and fast-tracked home-buying initiatives by local governments, could help lessen larger economic threats and sustain housing stability. Return of buyer confidence Investor sentiment seems to be improving. The Hang Seng Mainland Properties Index, which follows 10 key developers listed in Hong Kong, has climbed 10% so far this year. The wide-ranging CSI 300 Index, reflecting China's prime publicly traded businesses, has also edged up by 2.7%. See also China flying its Wuhan citizens overseas back home While the path to complete recovery is still undefined, April's statistics imply that China's beleaguered property market may be creeping closer to a decisive moment, sustained by a synchronised policy push and a careful reappearance of consumer confidence.
South China Morning Post
17-03-2025
- Business
- South China Morning Post
China's home prices drop for 21st straight month as property recovery remains elusive
China's new-home prices fell for the 21st straight month in February as a recovery continued to elude the key economic sector, underscoring the need for more bold measures to stabilise the market. Advertisement Across 70 mainland cities, February new-home prices dropped 0.1 per cent month on month, the same decline recorded in January, according to data released by the National Bureau of Statistics (NBS) on Monday. Prices for new homes fell 5.2 per cent year on year, slightly less steep than the 5.4 per cent year-on-year drop in January. Second-hand home prices fell 0.3 per cent month on month in February across the 70 cities, the same decline as in January. On an annual basis, they fell 7.5 per cent, adding to a 7.8 per cent loss in January. 'Since February is a traditionally slow season for the market, such a decrease is normal,' said Yan Yuejin, vice-president of Shanghai-based E-House China Real Estate Research Institute. 'In the first half of the year, the housing price index will experience a continued narrowing of declines, with some cities leading the price increases.' Across China's four top-tier cities – Beijing, Shanghai, Guangzhou and Shenzhen – new-home prices edged up 0.1 per cent month on month in February, the same increase as January. Second-hand home prices in those cities lost 0.1 per cent last month, after a 0.1 per cent gain in January. Advertisement New-homes prices were unchanged in second-tier cities, including Tianjin, Wuhan and Chengdu, compared with a 0.1 per cent rise in January. Prices of second-hand homes in those cities slipped 0.4 per cent, adding to a 0.1 per cent drop in January.
South China Morning Post
17-02-2025
- Business
- South China Morning Post
Chinese cities must buy back more land faster to aid property developers, analysts say
Local governments in mainland China are speeding up their purchases of idle land from developers, but more cities need to take part to expand the scale of the initiative and rescue the property market from its five-year slowdown, according to analysts. Advertisement Several cities in China's southern Guangdong province last week unveiled plans to buy idle land totalling more than 35 billion yuan (US$4.8 billion) from developers via special bond issuances – the first such move since authorities announced the scheme to address the residential land glut in October. The plans involve more than 160 plots of land, measuring 6.8 million square metres, as of February 11, and the price works out to or 5,147 yuan per square metre, according to data compiled by think tank China Index Academy. 'The bulk purchase officially kicks off buying of idle and raw land through issuance of local government special bonds in 2025, and we expect more cities to join the ranks,' said Yan Yuejin, vice-president of Shanghai-based E-House China Real Estate Research Institute. The initiative was expected to help equalise supply and demand in the land market as well as provide cash flow for developers, reducing their financial burdens and stabilising their operations, he added. Advertisement The land plots are being sold for less than developers paid for them. In the vast majority of cases, the purchase price is 80 per cent or less of what the developer paid, according to China Index Academy. China's property sector, which once accounted for a quarter of the economy, suffered a deep slide in sales and prices starting in late 2020, when Beijing's 'three red lines' policy limited developer borrowing, leading to construction halts and an unprecedented number of defaults. Later the Covid-19 pandemic further dampened sales.
South China Morning Post
17-02-2025
- Business
- South China Morning Post
China's land buy-backs to help developers must accelerate: analysts
Local governments in mainland China are speeding up their purchases of idle land from developers, but more cities need to take part to expand the scale of the initiative and rescue the property market from its five-year slowdown, according to analysts. Several cities in China's southern Guangdong province last week unveiled plans to buy idle land totalling more than 35 billion yuan (US$4.8 billion) from developers via special bond issuances – the first such move since authorities announced the scheme to address the residential land glut in October. The plans involve more than 160 plots of land, measuring 6.8 million square metres, as of February 11, and the price works out to or 5,147 yuan per square metre, according to data compiled by think tank China Index Academy. 'The bulk purchase officially kicks off buying of idle and raw land through issuance of local government special bonds in 2025, and we expect more cities to join the ranks,' said Yan Yuejin, vice-president of Shanghai-based E-House China Real Estate Research Institute. The initiative was expected to help equalise supply and demand in the land market as well as provide cash flow for developers, reducing their financial burdens and stabilising their operations, he added. The land plots are being sold for less than developers paid for them. In the vast majority of cases, the purchase price is 80 per cent or less of what the developer paid, according to China Index Academy. China's property sector, which once accounted for a quarter of the economy, suffered a deep slide in sales and prices starting in late 2020, when Beijing's 'three red lines' policy limited developer borrowing, leading to construction halts and an unprecedented number of defaults. Later the Covid-19 pandemic further dampened sales.
