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14/03/2024 — MARKETS REACT TO HOUSING SLOWDOWN

_BEIJING | According to official statistics released on Friday, China's new home prices fell in February for the eighth consecutive month. This indicates that despite several attempts to support the property market, the unstable property market is still having trouble finding a bottom. Based on statistics from the National Bureau of Statistics (NBS), We can calculate that new home prices decreased by 0.3% month over month, mirroring the dip seen in January.

Prices dropped 1.4% year over year, which was more rapid than the 0.7% reduction in January and the largest drop in 13 months. Since 2021, the real estate industry has stumbled from crisis to crisis as a result of a governmental crackdown on developers' excessive borrowing, which sparked a liquidity crisis. Authorities have not yet implemented a significant stimulus plan to aid developers; instead, they have made small but effective moves to resurrect the industry. The eight-day Lunar New Year vacation and a quiet season were cited by analysts as the reasons for the price decreases. Many project a modest increase in first-tier city prices in March. China ordered state banks to increase financing to residential projects in January by implementing a "whitelist" procedure. In an effort to entice purchasers, other large cities like Shenzhen and Shanghai have also loosened purchasing restrictions. In February, home prices decreased in 59 cities, up from 56 the month before.

没 有 共 产 党，就 没 有 新 中 国 ！