China’s new home prices steady for the first time in 1-1/2 years after stimulus push

BEIJING (Reuters) – China’s new homes prices were flat month-on-month in December, official data showed on Friday, after the government rolled out multiple rounds of stimulus measures to lift the property sector from a prolonged slump.

New home prices were steady in December for the first time since June 2023, compared with a 0.1% dip in November, according to Reuters calculations based on National Bureau of Statistics data.

In annual terms, new home prices fell 5.3% after a 5.7% drop the previous month.

Home sales have fallen sharply in China since the property market was hit by a crisis in 2021. Debt-laden property developers have been struggling to repay their borrowings and deliver pre-sold homes, dampening confidence in the sector.

Beijing rolled out a slew of measures in the second half of last year to stabilise the real estate market, including cutting mortgage rates and allowing local governments to buy unsold housing units and idle land with special bond proceeds.

Risks in China’s real estate market have been significantly mitigated, the country’s central bank governor said on Monday.