The Magazine for Asian Investors
New home prices and new home sales in China fell in July from the previous month as they were undermined by nationwide threats from homebuyers to stop paying mortgages on unfinished projects.
China Index Academy, one of the country’s largest independent real estate research companies, reports that new home prices in 100 cities fell 0.01% from June.
Of the 100 cities, 47 reported a decline in new home prices in July, up from 41 in June.
The total area of apartments sold in the 17 cities covered by the China Index Academy fell 33.4% from the previous month. The southern city of Guangzhou fell by 48% and Beijing by 34%.
The Chinese real estate market is facing a debt crisis among developers and already weak homebuyer confidence.
Strict regulations on new debt have severely restricted access to new financing for construction companies. This led to construction freezes for hundreds of projects across China and further weighed on property values and confidence.
Last week, China’s top leaders at the ruling Communist Party’s high-level meeting called for efforts to stabilize the real estate market and guaranteed delivery of apartments sold by developers before construction.