Insignia Consultants | China's home prices dip in May, extending two-year stagnation
China's home prices dip in May, extending two-year stagnation
BEIJING, June 16 (Reuters) - China's new home prices fell in May, extending a two-year long stagnation, official data showed on Monday, highlighting challenges in the sector despite several rounds of policy support measures.
New home prices fell 0.2% month-on-month in May after showing no growth the previous month, according to Reuters calculations based on data released by China's National Bureau of Statistics (NBS).
The property sector, once a key driver of growth for the world's second-largest economy and accounting for roughly a quarter of economic activity at its peak, holds around 70% of Chinese household wealth.
The market entered a prolonged slump in 2021, with debt-laden developers struggling to deliver homes that buyers had already paid for, further denting consumer confidence.
After policymakers announced supportive policies in recent months as Beijing braced for extended trade tensions with the U.S., positive signs have emerged in the housing market.
A private survey by property researcher China Index Academy showed the average price of new homes across 100 cities in China climbed 0.30% in May, more than doubling from a month earlier.
