Image: Reuters Berita 24 English - According to a private survey released on Friday, new home prices in China increased at a slightly highe...
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| Image: Reuters |
Berita 24 English - According to a private survey released on Friday, new home prices in China increased at a slightly higher rate in June compared to the previous month, spurred by a number of policy loosening measures taken by small- and medium-sized cities to boost demand.
According to survey results from China Index Academy, one of the major independent real estate research businesses in the nation, new home prices increased in 100 cities by 0.04 percent, moving up from the 0.03 percent increase in May.
In recent weeks, there have been some encouraging signals for China's struggling real estate industry. This year's stimulus measures, which include subsidies, lower down payments, and relaxations on property purchases, have primarily been aimed at assisting homebuyers.
China Vanke Co., a significant homebuilder, claimed this week that the real estate market had reached its short-term bottom thanks to a clear month-over-month increase in sales in June, which was aided in part by pent-up demand after months of COVID-19 limitations. Chairman Yu Liang warned that the recovery would be moderate and gradual.
47 out of the 100 places the research company polled recorded price growth month over month, down from more than 40 cities in May.
Following a 0.07 percent increase in May, prices in tier-two cities, which includes provincial capitals, increased by 0.14 percent. The largest gain, 0.68 percent, was recorded in Xian, the Shaanxi province's capital.
According to the Academy, "local governments are expected to further develop city-specific programmes," such as improved conditions for families with more than one child.
The second half of the year is anticipated to see a recovery in the real estate market as consumer confidence in home purchases gradually improves as a result of softer COVID-19 limits and stimulus measures.
