The National Bureau of Statistics (NBS) reported on Thursday that the demand for new homes in China was affected for the fifth consecutive month in December due to the COVID-19 outbreak. This is in line with previous reports indicating a slowdown in China’s real estate market, as the pandemic has led to economic uncertainty and a decrease in consumer confidence.
However, there are also signs of hope for the market as the Chinese government lifted strict epidemic control measures in December. This, coupled with recent support measures for homebuyers and real estate developers, has led to some optimism that the market will improve in the coming months.
The NBS data shows that new home prices in December decreased by 0.2% month-over-month, following a 0.2% drop in November. This represents a continuation of the trend of declining prices over the past year, with year-on-year, house prices falling 1.5%. This marks the eighth consecutive month of declines, following a 1.6% drop in November.
The data also reveals that 55 out of China’s 70 cities experienced a decrease in new home prices in December, with more cities experiencing drops than in November. This indicates that the slowdown in the real estate market is widespread, affecting a large portion of the country.
Despite the recent support measures and the lifting of strict epidemic control measures, it is important to note that the real estate sector, which is a major driver of China’s economy, was significantly impacted by the pandemic. This is due to debt problems among real estate development companies and a lack of payments from buyers, which may continue to limit recovery in the market.
In conclusion, the COVID-19 pandemic has led to a slowdown in China’s real estate market, with declining prices and decreased demand for new homes. However, there are signs of hope for the market as the government has lifted strict epidemic control measures and introduced support measures for homebuyers and real estate developers. Despite this, it is important to note that the real estate sector was significantly impacted by the pandemic, and recovery may be limited by ongoing economic uncertainty and the lack of payments from buyers.