China Home Prices Hold Steady After Declining for 16 Months

China’s home prices steadied in January, ending a 16-month decline after the government expanded stimulus policies for the sector.

(Bloomberg) — China’s home prices steadied in January, ending a 16-month decline after the government expanded stimulus policies for the sector.  

New-home prices in 70 cities, excluding state-subsidized housing, remained unchanged, compared with a 0.25% decline in December, National Bureau of Statistics figures showed Thursday. In the secondary market, existing-home prices dropped 0.28%, smaller than the 0.41% decline in the previous month. 

Chinese regulators unveiled a sweeping plan to revive the housing industry, focusing mainly on the supply side by pledging financial support to cash-strapped developers. Since then, officials have taken further steps to stimulate homebuyer demand and ensure the sector’s stable growth. 

January was a key test of demand, as migrant and white-collar workers stuck in bigger cities during Covid lockdowns had their first chance in years to hunt for properties in their home towns during the Lunar New Year. But sales by the 100 biggest real estate developers continued to slump, down 33% from a year earlier, data from China Real Estate Information Corp. showed. 

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