This photo taken with a mobile phone shows people watching a sand table model of a real estate project in east China’s Shanghai, May 28, 2024. [Photo/Xinhua]
Home prices in first-tier Chinese cities maintained an upward trend in January, adding to signs of stabilization in the country’s property sector amid active trading and improved sentiment.
In the country’s four first-tier Chinese cities, namely Beijing, Shanghai, Guangzhou and Shenzhen, prices of new and second-hand homes both went up by 0.1 percent from the previous month, data from the National Bureau of Statistics showed on Wednesday.
Moreover, the recovery trend extended beyond the biggest cities. New home prices in second-tier cities recorded their first monthly increase since June 2023, rising by 0.1 percent. Prices of second-hand homes dipped by 0.3 percent.
Among 70 large and medium-sized cities, 24 reported month-on-month increases in new home prices, while seven saw gains in second-hand home prices.
The data points to continued momentum in a market that began stabilizing in the final quarter of last year after authorities moved to reverse the market downturn and stabilize the sector.
Policymakers have rolled out a raft of measures to support the sector, including cuts to mortgage rates, lower down payment requirements, and relaxed purchase restrictions.
Market activity has picked up. Between Jan. 1 and 27, the total sales area of newly built commercial housing in 30 cities rose four percent year on year, while the transaction volume of second-hand homes in 20 cities surged 19 percent, according to data from the China Index Academy.
This warming trend has also fueled demand for home loans. New personal housing loans jumped to 244.7 billion yuan (approximately 34.13 billion U.S. dollars) in January, up by 151.9 billion yuan from a year earlier, official data showed.
Amid recovering market confidence, major property developers are stepping up land acquisitions, with multiple industry giants announcing new project acquisitions in January.
Poly Developments and Holdings Group announced recent purchases of six land parcels in cities such as Guangzhou, Foshan and Sanya, with total payments nearing 10 billion yuan. Vanke said it has recently secured four development sites in Tianjin, Tangshan, Guangzhou and Guiyang, with a total land area of 213,000 square meters.
Analysts said the latest acquisitions by leading developers signal renewed confidence regarding the sector’s prospects and growing optimism in the market’s long-term outlook as government support measures gain traction.