Prices for new homes in China increased at a quicker rate in November, according to a private survey released on Sunday. This uptick appears to be supported by various policies aimed at revitalizing the struggling property market.
The average price across 100 cities rose by 0.36%, up from 0.29% in October, as reported by the China Index Academy. Year-over-year, the average price increased by 2.40%, compared to a 2.08% rise in October.
Official home price data from China’s statistics bureau is set to be released on December 16. The property market, which accounted for about a quarter of economic activity at its peak in 2021, continues to be a significant drag on the world’s second-largest economy.
In recent months, Chinese policymakers have intensified efforts to boost market sentiment, improve affordability, and ease home purchase restrictions. Measures such as tax breaks and reduced down payments have been introduced.
According to a Reuters poll, home prices are expected to decline at a slower rate this year and into next, stabilizing in 2026 as these support measures begin to take effect.
Since the implementation of new real estate policies at the end of September, both the new and second-hand housing markets have shown signs of slight improvement, though the sustainability of this trend remains uncertain. Ying Wang, managing director of Asia-Pacific corporate ratings at Fitch, noted last week that “home prices are likely to continue to fall until corporate earnings in the real economy improve, which would enhance employment and residents’ income outlook.” Wang also stated that Fitch maintains a negative credit outlook on China’s real estate market through 2025.
