China's Housing Prices on the Rise: A Detailed Analysis

New home prices in China saw a modest increase of 0.30% in May, according to China Index Academy, nearly doubling the growth rate from April. The rise suggests that supportive policy measures might be impacting the market. Both first- and second-tier cities experienced price hikes, with Shanghai leading.

In a recent survey by the China Index Academy, the average price of new homes in China climbed by 0.30% in May, signaling potential success for supportive policies implemented by the government. This increase nearly doubled April's rate of 0.14%.

Despite ongoing efforts by Chinese policymakers to stabilize the real estate sector through supportive measures, including reduced lending rates, the property market has faced persistent pressure. New home prices rose in both first- and second-tier cities, with Shanghai leading the surge among 100 surveyed cities.

As China's statistics bureau prepares to release official data on June 16, the market continues to see a high volume of listings for second-hand homes, capping price increases in this segment. The property market remains critical to China's economy, representing about a quarter of economic activity.

(With inputs from agencies.)