Close Menu
Invest Insider News
    Facebook X (Twitter) Instagram
    Wednesday, July 30
    Facebook X (Twitter) Instagram Pinterest Vimeo
    Invest Insider News
    • Home
    • Bitcoin
    • Commodities
    • Finance
    • Investing
    • Property
    • Stock Market
    • Utilities
    Invest Insider News
    Home»Property»China’s Housing Market Shows Signs of Stabilizing
    Property

    China’s Housing Market Shows Signs of Stabilizing

    January 20, 20254 Mins Read


    China’s struggling property market is starting to show signs of stabilizing after a few tumultuous years, with the country’s new home prices finally having stopped falling in December, according to the latest official data.

    It is the first time in 18 months that new home prices in China have not declined, Reuters reported after analyzing data from China’s National Bureau of Statistics (NBS). Newsweek contacted Goldman Sachs and S&P Global for comment by email on Monday morning.

    Why It Matters

    The ongoing crisis in the property market has been dragging China’s entire economy down, as the property sector accounted for 25 percent of the Chinese economy in 2021, The International Monetary Fund said—the share rose to 31 percent if infrastructure was included. The sector also accounted for 70 percent of household wealth.

    Any signs of recovery are positive news for the Chinese government, after its intervention to stabilize the market has had little success until now.

    What To Know

    China’s once-booming property market spurred the explosive growth of the country’s economy in the past few decades.

    But the same industry that helped bring millions of people out of poverty and into the middle class has faced a dramatic downturn over the past three years. There have been decades of risky investments and the default of major developers like Evergrande in 2021 and Country Garden in 2023.

    Data released by the NBS on Friday showed new home prices in China remained unchanged between November and December 2024—putting a stop to a downslide that has been going on since June 2023.

    Compared to a year earlier, however, prices fell by 5.3 percent—slightly less than in November, which saw a 5.7 percent year-on-year drop.

    In another positive sign of stabilization, 23 of the 70 large- and medium-size cities analyzed by the NBS saw an increase in home prices—six more than in November.

    Chinese media have attributed these price increases to the government’s initiatives to stabilize the country’s property sector, including by encouraging local governments to slash inventory.

    “Key measures include eased purchasing restrictions, lowering home-buying costs and the introduction of a trade-in scheme for houses to stimulate demand,” the People’s Daily, a government-controlled news website, wrote on Monday.

    “On the supply side, local authorities have encouraged the conversion of commercial housing into government-subsidized housing, while also curtailing land sales to cap market supply.”

    Hong Kong China Housing
    People walk by at the Tai Hang Sai Estate on March 17, 2024, in Hong Kong, China. For the first time in 18 months, new home prices in China stopped falling month-on-month in December.
    People walk by at the Tai Hang Sai Estate on March 17, 2024, in Hong Kong, China. For the first time in 18 months, new home prices in China stopped falling month-on-month in December.
    Sawayasu Tsuji/Getty Images

    What’s Behind the Ongoing Crisis?

    The ongoing crisis in China’s property sector was triggered by a liquidity crunch that followed years of risky investments by developers in the country. Concerned over how indebted the sector had become, the Chinese government restricted new borrowing by developers in August 2020. However, the measure had the unwanted consequences of leaving many developers in the country unable to complete their housing projects and defaulting on their debt.

    Evergrande, once China’s top-selling developer, defaulted on its offshore debt obligations in late 2021, in a major blow to the country’s sector. The giant’s downfall, which shook consumer and investor confidence, reflected system issues in the entire sector.

    What People Are Saying

    Ben Bennett, Asia-Pacific investment strategist at Legal And General Investment Management, told Reuters: “The property sector is still under pressure and authorities don’t want to see a return to the old days of leverage and big price rises, so investors still need to be patient.”

    In a recent report by Goldman Sachs, Yi Wang, who leads the China real estate team, said: “Incremental government implementation of housing destocking will provide much better visibility for the housing market to stabilize in the coming years.”

    What Happens Next

    A recent report by Goldman Sachs on the state of the Chinese property sector found that the government’s measures to address the crisis had so far fallen short. However, “there are indications that the government will follow through with enough additional fiscal stimulus to address the real estate market breakdown in the coming years.”

    S&P Global wrote in October last year that it expects China’s property sales to stabilize toward the second half of 2025 as prices steady in the most expensive cities in the country and overall sales volumes.

    “This will depend on the government’s continued support for funding conditions for developers and efforts to reduce inventories,” the company wrote.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleLe retour de Trump au pouvoir : quatre façons dont il impactera les marchés
    Next Article Davos 2025: India’s copper demand to surge 5x by 2050, says BHP CFO Vandita Pant

    Related Posts

    Property

    HSBC Profit Falls 26% to $15.8B on China Losses and Real Estate Troubles

    July 30, 2025
    Property

    UK property insurers paid £1.6bn in claims during Q2 driven by adverse weather: ABI

    July 30, 2025
    Property

    Government merges rail property arms in bid to deliver 40,000 new homes

    July 30, 2025
    Leave A Reply Cancel Reply

    Top Posts

    How is the UK Commercial Property Market Performing?

    December 31, 2000

    How much are they in different states across the US?

    December 31, 2000

    A Guide To Becoming A Property Developer

    December 31, 2000
    Stay In Touch
    • Facebook
    • YouTube
    • TikTok
    • WhatsApp
    • Twitter
    • Instagram
    Latest Reviews
    Utilities

    Yes, it’s real — Denton residents can now pay each other’s utility bills

    October 15, 2024
    Property

    Frasers Property conclut des accords de prêt d’actionnaires pour le développement de Bangkok ; les actions baissent de 3%.

    April 8, 2025
    Bitcoin

    Posséder un bitcoin est le nouveau rêve américain, explique le gestionnaire de portefeuille de bitwise

    June 15, 2025
    What's Hot

    Gamestop parie sur le bitcoin : pourquoi les actions ont chuté ?

    March 31, 2025

    Wall Street isn’t killing London’s IPO market – arrogance is

    July 14, 2025

    Bitcoin Price Stabilizes as Analysts Flag an Accumulation Period

    October 23, 2024
    Most Popular

    Current price of Bitcoin: Oct. 11, 2024

    October 11, 2024

    Ellen DeGeneres buys property in the UK two years ahead of her retirement from showbiz

    October 13, 2024

    Canada on track to be third-largest wheat exporter in ’24-’25

    October 28, 2024
    Editor's Picks

    Ethereum’s volatility beats Bitcoin – A sign of ETH’s bull run?

    August 14, 2024

    Asian stocks are mixed after Dow sets a new record

    July 16, 2024

    Carmaux. Polyclinique : le Rotary finance une plateforme de stabilométrie

    June 26, 2025
    Facebook X (Twitter) Instagram Pinterest Vimeo
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions
    © 2025 Invest Insider News

    Type above and press Enter to search. Press Esc to cancel.