Survey Shows China’s Home Prices Increase at Quickest Rate in More Than 2.5 Years

China’s property market is showing signs of recovery as new home prices surged at the fastest pace in over two and a half years in March, according to a private survey. The average new home price across 100 cities in China rose by 0.27% in March, marking the largest increase since July 2021. This growth comes after a series of supportive measures were implemented to stabilize the crisis-hit property sector.

The property sector in China has been facing challenges since 2021 due to a regulatory crackdown on high leverage among developers, leading to a liquidity crisis. Despite efforts by local policymakers to stimulate sales and increase liquidity, the sector has struggled to bounce back.

Beijing city authorities recently eased home purchase regulations by repealing a rule that restricted individuals from buying a home in the city within three years of divorce. This move, along with other supportive measures, contributed to the increase in new home prices in March.

While the number of cities with on-month price rises for new homes increased to 43 in March, total sales by value among 100 real estate companies plummeted by 49.0% year-on-year in the first three months of the year. Despite the challenges, experts believe that the property market sentiment may gradually improve, leading to a potential turnaround in the second quarter.

Overall, the latest data indicates a positive trend in China’s property market, offering hope for a recovery in the sector.