⌛ Did you miss ProPicks’ 13% gains in May? Subscribe now & catch June’s top AI-picked stocks early.Unlock Stocks

China house prices fall at a faster pace in Feb

Published 03/15/2024, 09:48 AM
Updated 03/15/2024, 10:42 AM
© Reuters
USD/CNY
-
SSEC
-
CSI300
-

Investing.com-- Chinese house prices fell at a sharper pace in February than the prior month, official data showed on Friday, as the country’s property market remained under pressure from worsening sales and waning consumer confidence.

Chinese house prices fell 1.4% year-on-year in February, about twice as much as the 0.7% drop seen in January.

The reading came despite consistent efforts from Beijing to support the housing market, including lower lending rates and fewer restrictions on homebuyers.

Prices fell about 0.36% month-on-month in February, with most cities in the country logging steady declines in prices from their 2021 peaks.

"Given the heavy weighting of property in household portfolios, it is of the utmost importance for China to stabilise the property market if it is to restore confidence. Declining property prices will create a negative wealth effect, acting as a headwind to consumption," analysts at ING said in a note.

China's property market decline, marked by a series of high-profile defaults over the past three years, has been a key drag on the economy, as it struggles to recover from a COVID-induced slump. The property market accounts for roughly a quarter of the overall economy.

ING analysts noted that while recent mortgage rate cuts and looser regulatory checks on the market were a move in the right direction, Beijing likely needed to do much more to support the sector.

"Real estate investment is likely to remain in negative growth for the year, and the property sector and connected industries will likely continue to see pressure for consolidation," ING analysts said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.