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China property
Business

China’s new and second-hand home prices extend slide in April as Beijing unveils more rescue measures

  • New home prices fell for an 11th month in April, while those in the secondary market capped 12 months of declines
  • Prices of new homes weakened in 64 of the 70 medium and large cities tracked by the statistics bureau, rising from 57 in March

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Buildings under construction in Chongqing. China is taking measures to tackle a protracted housing crisis. Photo: Bloomberg
Yuke Xiein Beijing
A slide in home prices in mainland China deepened in April, a government report showed, underscoring the erosion of confidence among consumers and galvanising officials in Beijing into fresh actions to end a three-year crisis and rescue beleaguered developers.

Prices for new homes in first-tier cities fell 0.6 per cent from March to cap an 11th straight month of decline, according to data published by the National Bureau of Statistics on Friday. Sixty-four of the 70 medium and large cities recorded declines, the statistics bureau said, rising from 57 in March.

In the secondary market, home prices weakened 0.9 per cent, a 12th month of declines, the report showed as 69 cities experienced a drop just like in March.

The losses showed piecemeal measures and sporadic incentives by local governments have done little to rejuvenate the housing market, prompting a fresh round of high-powered response from Beijing to end the crisis. Sales reported by the nation’s top 100 developers tumbled 47 per cent in the first four months, from the same period in 2023, according to China Real Estate Information Corp.

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“April’s data suggests the property market is still under pressure,” said Yan Yuejin, a director at E-House China Research and Development Institute in Shanghai. “It points to an increasing need to clear existing inventory.”

Chinese Vice-Premier He Lifeng called on local governments to purchase undeveloped land and unsold homes from property developers in a strong signal of Beijing’s determination to rescue the sector. Local governments should recover or purchase the idle stockpile to help ease pressure on distressed builders, Xinhua News Agency reported, citing He.

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