Chinese Housing Market Languishes Further in July

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The Chinese housing market posted a lacklustre performance in the month of July, as the sector continues to reel from the debt woes of leading developers and a renewed round of Covid-19 restrictions.

According to data released by the National Bureau of Statistics (NBS) on 15 August, the number of Chinese cities to see declines in both new and pre-owned homes saw a slight increase in July, while the scope of price declines expanded or remained stable.

New commercial housing prices for China’s first-tier cities saw an on-month rise of 0.3% in July, for a deceleration of 0.2 percentage points compared to June.

Pre-owned housing sales prices rose 0.2% compared to the preceding month, for an acceleration in growth of 0.1 percentage points compared to June.

Beijing, Shanghai and Guangzhou saw new home price gains of 0.5%, 0.5% and 0.3% respectively in July, while in Shenzhen prices fell 0.2%.

Beijing, Shanghai and Guangzhou saw increases in pre-owned home prices of 0.2%, 0.8% and 0.1% respectively in July, while in Shenzhen prices fell 0.5%.

In China’s second-tier cities, new commercial housing prices held flat in July compared to the previous month, while pre-owned housing sales prices fell 0.2%, for a decline 0.1 percentage points ahead of the fall in June.

In third-tier cities, new commercial housing prices and pre-owned housing prices both fell 0.3% in July compared to the previous month, for a decline on par with the fall in June.