China’s new home prices declined at a slower pace in June, offering a faint pulse of optimism in a property market that has been flatlined for nearly three years. Private surveys indicate new home prices ticked up 0.16% month-over-month in June, a modest improvement from the official data showing a 0.2% monthly decline in May.
The numbers paint a grim portrait
According to China’s National Bureau of Statistics, new home prices across 70 major cities fell 0.2% month-over-month in May, actually worsening from the 0.1% drop recorded in April. On a year-over-year basis, prices were down 3.5%, marking the 35th consecutive month of annual declines.
The resale market is faring even worse. Prices across 100 cities dropped 0.42% month-over-month in June, accelerating from a 0.32% decline the prior month. First-tier cities, the Shanghais and Beijings of the world, saw resale prices crater 6.95% year-over-year. Second-tier cities experienced an even steeper 8.21% annual decline, according to China Index Academy data.
Only four out of 70 cities managed to post year-over-year price increases in new homes during the first five months of the year.
