Housing price declines are on the rise in China. In November, house prices in 70 cities continued to drop to their lowest levels. The number of cities experiencing this condition continues to grow.
Zhang Dawei, the chief analyst at Centaline Property, said, “This is the worst housing price data from the Bureau of Statistics in the past seven years.”
He also predicts that house prices will continue to fall in December. In recent times, credit policy has been loosened more, so the market is expected to gradually stabilize in the first quarter of 2022. First–and second–tier cities will be the first to emerge from the recession.
According to data released by China’s National Bureau of Statistics on Wednesday, Dec. 15, Reuters calculated that the index of newly built commercial housing prices in 70 large and medium-sized cities rose 3.0% year-on-year—the lowest increase since February 2015.
Zhang Dawei pointed out that the decline in housing prices has become the mainstream of the current market. The biggest change was between October and November. However, the second-hand housing market in First class cities will be stable again.
Since September, when real estate companies such as China Evergrande and Kaisa became tangled in debt, investor confidence has been reduced. A survey conducted by Reuters earlier this month showed that in the first half of 2022, house prices are expected to continue to decline by 1% year-on-year.