{"id":24171,"date":"2024-03-15T01:27:58","date_gmt":"2024-03-15T05:27:58","guid":{"rendered":"https:\/\/newssprinters.com\/index.php\/world\/chinas-home-prices-extend-declines-despite-support-measures\/15\/03\/2024\/"},"modified":"2024-03-15T01:27:58","modified_gmt":"2024-03-15T05:27:58","slug":"chinas-home-prices-extend-declines-despite-support-measures","status":"publish","type":"post","link":"https:\/\/newssprinters.com\/index.php\/world\/chinas-home-prices-extend-declines-despite-support-measures\/15\/03\/2024\/","title":{"rendered":"China&#8217;s home prices extend declines despite support measures"},"content":{"rendered":"<p>\n<\/p>\n<div>\n<p>By Liangping Gao and Ryan Woo<\/p>\n<p>BEIJING (Reuters) -China&#8217;s new home prices dropped for an eighth straight month in February, official data showed on Friday, suggesting the fragile property market is struggling to find a bottom despite a slew of measures to shore up the sector.<\/p>\n<p>New home prices fell 0.3% month-on-month, in line with January&#8217;s decline, according to Reuters calculations based on National Bureau of Statistics (NBS) data.<\/p>\n<p>On a year-on-year basis, prices fell 1.4%, faster than the 0.7% drop in January and the biggest decline in 13 months.<\/p>\n<p>The property sector has lurched from one crisis to another since 2021 after a regulatory crackdown on developers&#8217; high leverage led to a liquidity crisis.<\/p>\n<p>So far, authorities have not rolled out massive stimulus to support developers, but have instead taken incremental steps to revive the sector but to limited effect.<\/p>\n<p>Analysts attributed the price declines to a slow season and disruptions caused by the eight-day Lunar New Year break.<\/p>\n<p>&#8220;It will take time for demand, home buyers&#8217; income and confidence to recover this year,&#8221; said Zhang Dawei, an analyst at property company Centaline, who expects prices in first-tier cities to grow slightly in March.<\/p>\n<p>China in January launched a &#8220;whitelist&#8221; mechanism that orders state banks to boost lending to residential projects. More big cities including Shanghai and Shenzhen have also eased purchase curbs to lure homebuyers.<\/p>\n<p>Home prices fell in 59 cities in February, up from 56 the previous month. Three of the four first-tier cities, including Beijing and Shenzhen, registered a month-on-month decline in prices last month.<\/p>\n<p>&#8220;Declining property prices will create a negative wealth effect, acting as a headwind to consumption,&#8221; said Lynn Song chief economist, Greater China at ING.<\/p>\n<p>&#8220;Measures including scrapping purchase restrictions, property project whitelists, and the February cut to the 5-year loan prime rate to help lower mortgage rates are steps in the right direction, but further supportive policies may still be needed.&#8221;<\/p>\n<p><button class=\"link caas-button collapse-button\" data-ylk=\"elm:readmore;slk:Story continues\">Story continues<\/button><\/p>\n<p>China last month announced its biggest ever reduction in the benchmark mortgage rate to prop up the struggling property market.<\/p>\n<p>Premier Li Qiang in his government work report to the parliament earlier in March, vowed to stabilise the property sector with targeted measures while providing financing to &#8220;justified&#8221; projects.<\/p>\n<p>Hwabao Trust economist Nie Wen said sales in first-tier cities will improve in March, but that it remains to be seen whether overall property sales can bottom out.<\/p>\n<p>The statistics bureau will release data on property sales and investment on Monday.<\/p>\n<p>(Reporting by Qiaoyi Li, Liangping Gao and Ryan Woo. Editing by Sam Holmes.)<\/p>\n<\/div>\n<p><a href=\"https:\/\/finance.yahoo.com\/news\/chinas-feb-home-prices-extend-014405858.html\" target=\"_blank\" rel=\"noopener nofollow\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Liangping Gao and Ryan Woo BEIJING (Reuters) -China&rsquo;s new home prices dropped for an eighth straight month in February, official data<br \/><button class=\"read-more\"><a href=\"https:\/\/newssprinters.com\/index.php\/world\/chinas-home-prices-extend-declines-despite-support-measures\/15\/03\/2024\/\">Read More &rsaquo;<\/a><\/button><\/p>\n","protected":false},"author":1,"featured_media":24173,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/newssprinters.com\/index.php\/wp-json\/wp\/v2\/posts\/24171"}],"collection":[{"href":"https:\/\/newssprinters.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newssprinters.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newssprinters.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newssprinters.com\/index.php\/wp-json\/wp\/v2\/comments?post=24171"}],"version-history":[{"count":0,"href":"https:\/\/newssprinters.com\/index.php\/wp-json\/wp\/v2\/posts\/24171\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newssprinters.com\/index.php\/wp-json\/wp\/v2\/media\/24173"}],"wp:attachment":[{"href":"https:\/\/newssprinters.com\/index.php\/wp-json\/wp\/v2\/media?parent=24171"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newssprinters.com\/index.php\/wp-json\/wp\/v2\/categories?post=24171"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newssprinters.com\/index.php\/wp-json\/wp\/v2\/tags?post=24171"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}