China new home prices rise in January as government signals support, private survey says

New home prices rose 0.18% ⁠month-on-month, easing from a 0.28% gain in December, according to the China Index Academy, one of the country's largest property research firms. Cities including Chengdu, Shanghai and Hangzhou saw the launch of ​high-end upgraded housing projects in January, lifting both month-on-month and year-on-year prices in ‍first- and second-tier cities, the research firm said.

Average prices of new homes across 100 Chinese cities rose in January, while declines in the secondary market ‌narrowed, a private survey showed on Sunday, following renewed government pledges to stabilise the sector. New home prices rose 0.18% ⁠month-on-month, easing from a 0.28% gain in December, according to the China Index Academy, one of the country's largest property research firms.

Cities including Chengdu, Shanghai and Hangzhou saw the launch of ​high-end upgraded housing projects in January, lifting both month-on-month and year-on-year prices in ‍first- and second-tier cities, the research firm said. By contrast, third- and fourth-tier cities continued to work through existing inventory, with prices falling on both a monthly and annual basis.

Prices in the resale market fell ⁠0.85% ‌from the previous month, ⁠narrowing from a 0.97% decline in December. China's property sector has struggled since tighter regulations triggered a 2021 ‍liquidity crunch for developers, many of which have since defaulted on debt.

Local media recently reported ​that developers are no longer required to report monthly data under the country's "three red lines" ⁠policy, signalling an apparent end to rules that triggered the ongoing debt crisis. On January 1, Qiushi, the ⁠Communist Party's official journal, said the property sector was "undergoing a profound adjustment," calling on policymakers to shorten the adjustment period, smooth market volatility, and deliver support in one ⁠go rather than piecemeal. Sales are likely to slow in February due to the Spring Festival ⁠holiday, but demand ‌should pick up in March as high-quality land in core cities comes to market and developers step up pre-holiday promotions, the research ⁠firm said.

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