According to a private survey, resale home prices across 100 Chinese cities fell faster in March, highlighting the ongoing struggles in the country’s property market. The average resale price dropped by 0.59% month-on-month, a sharper decline than the 0.42% fall recorded in February. Meanwhile, new home prices showed a modest increase, rising by 0.17% during the same period.
On an annual basis, resale prices fell by 7.29% in March, only slightly better than the 7.3% drop seen in February. Despite government efforts to stabilise the property market, the figures suggest that challenges remain, especially in the resale sector.
China's housing policy, which aims to halt the market's decline, continues to shape the sector's recovery efforts. The government has focused on stabilising the market, particularly in large cities, where efforts are expected to take the lead. However, the survey noted that the gap between larger and smaller markets may persist.
In a related development, sales by the country’s top 100 property developers fell by 10.6% year-on-year, reflecting the persistent weakness in demand. This drop further signals the ongoing struggles faced by the real estate sector despite some signs of recovery in other areas.
Experts from Fitch Ratings have cautioned that the residential property market in China is likely to continue facing difficulties. Key factors such as demographic changes, high unsold inventory, and low housing affordability are expected to weigh heavily on the market’s recovery.
To address these challenges, the Chinese government has announced plans to increase lending for specific housing projects. The so-called “whitelist” initiative, introduced earlier this year, aims to provide financial support for qualified developers through state-owned and commercial banks. Additionally, efforts to revitalise urban villages are set to continue following the renovation of over a million units last year. These measures are part of the government's broader strategy to stabilise the property sector.
