China's New Home Prices See Faster Growth in November, Survey Shows

China's new home prices experienced accelerated growth in November, as reported by a recent survey. This increase reflects a recovering housing market, driven by stronger demand and government policies aimed at stabilizing the sector. The trend suggests a positive shift in the real estate market, with implications for both buyers and developers in the country's property landscape.

New home prices in China increased at a quicker rate in November, according to a private survey released on Sunday, as a series of policies may be helping to stabilize the struggling property market.

The average price across 100 cities rose by 0.36%, up from the 0.29% increase recorded in the previous month, based on data from property researcher China Index Academy.

Compared to a year earlier, the average price increased by 2.40%, slightly higher than the 2.08% growth seen in October.

China's statistics bureau will release official home price data on December 16.

The ongoing downturn in the property sector, which contributed about a quarter of the economy at its peak in 2021, continues to be a major challenge for the world's second-largest economy.

In recent months, Chinese policymakers have intensified efforts to improve sentiment, make housing more affordable, and ease home purchase restrictions, such as through tax breaks and reduced down payments.

Home prices are expected to decline at a slower rate this year and next, before stabilizing in 2026, according to a Reuters poll, as the various support measures begin to take effect.

Since the real estate policies were introduced at the end of September, the new and second-hand housing markets have shown slight improvement, though the sustainability of this recovery remains uncertain, said Ying Wang, managing director of Asia-Pacific corporate ratings at Fitch, last week.

"Home prices will likely keep falling until corporate earnings in the real economy improve, boosting employment and residents' income outlook," Wang noted, adding that Fitch maintains a negative credit outlook for China's real estate market through 2025.

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Source: Reuters‍