The results of a survey conducted by China Index Academy (CIA) showed that in January, the rise in prices for new housing in some of the largest cities in China continued.
This was one of the first signs of confidence building in the market as a result of the measures taken by the state to support the real estate sector.
Prices on the primary housing market in January compared to December increased in 12 cities, and in December compared to November — in 10.
“The slowdown in the decline in prices and the reduction in the number of cities where prices have been declining shows that incentive measures are yielding results, and market confidence is showing signs of recovery,” the CIA said.
China’s real estate sector, which accounts for a quarter of its economy, has seen company defaults and suspended projects, undermining market confidence and putting pressure on economic growth.
The survey results also showed that in six cities, including Beijing and Chengdu in southwest China, in January, the decline in prices was replaced by their growth. In December, such a reversal was observed in three cities.
In 100 cities, prices in which the company tracks, in January the monthly rate of decline in housing prices slowed to 0.02% from 0.08% in December.
A number of measures to support the real estate sector and the lifting of quarantine measures in December slightly improved market sentiment.
In January, compared with December, housing prices in Shanghai — a major financial and shopping center — rose by 0.04% after rising by 0.01% in December, and in Hangzhou with a population of more than 10 million people, price growth accelerated to 0.11% from 0.06% in December.
“State support for the real estate sector will continue, and housing markets in the largest cities will recover first of all, contributing to gradual stabilization across the country,” the CIA said.