China house prices sink for ninth straight month in January
2023.02.15 22:30
© Reuters.
By Ambar Warrick
Investing.com–Chinese new home prices fell in January for a ninth consecutive month, as home buyers struggled with economic disruptions and rising COVID-19 cases, even as the country scaled back most COVID lockdown measures and increased spending.
fell 1.5% in January following a similar decline in December, data from the National Bureau of Statistics showed on Thursday. The reading was a ninth consecutive month of declines for the sector, as a property crisis in the country was exacerbated by a rash of strict anti-COVID measures imposed in late-2022.
But Beijing had then marked a swift pivot away from its zero-COVID policy in December, and withdrew most restrictions in early-January. But this did little to soothe the beleaguered property sector, as rising COVID-19 cases and liquidity shortages for several developers kept activity subdued.
Still, the lifting of anti-COVID measures appeared to have spurred some improvement for property markets. Chinese house prices grew 0.1% in January from the prior month for the first time in a year, according to Reuters calculations.
The Chinese government rolled out a slew of stimulus measures to support the beleaguered sector, including favorable mortgage rates and also reopening old financing measures for property developers.
But the measures have so far had a limited effect on the market, as homebuyers also grew more wary of investing after a severe liquidity crunch in 2021. The property market also had to contend with a prolonged mortgage strike in 2022.
China’s economy is struggling to recover after the lifting of most anti-COVID measures, as suggested by weaker-than-expected and readings for January.
But the world’s second-largest economy is still expected to bounce back this year amid a flurry of stimulus measures. The government recently reiterated its plans to foster economic growth with increased spending measures.
