China’s depressed real estate sector has recently shown some signs of improvement. This year, boost efforts have largely focused on
China Index Academy, one of the country’s largest autonomous land research institutions, said that the prices of new homes in 100 metropolitan areas went up by 0.04 percent in June. This is a slight increase from May, when the prices went up by 0.03 percent.
China Vanke Co (000002.SZ), a major homebuilder, said this week that the housing market has temporarily levelled off, with a moderate month-over-month increase in transactions in June, aided to a small extent by stifled demand following a lengthy period of COVID-19 restrictions.
However, Chairman Yu Liang warned that the recovery would be gradual and delayed.
The research company looked at 100 cities and found that prices went up in 47 of them from one month to the next. In May, prices went up in more than 40 cities.
In June, the cost of living in level two urban localities, such as state capitals, increased by 0.14 percent, accelerating from a 0.07 percent increase in May. At 0.68 percent, Xian, which is the capital of Shaanxi’s northern region, grew the most.
“Neighborhood state-run administrations would likely implement other city-specific arrangements,” like improved conditions for families with several children, according to the Academy.
“The real estate market is anticipated to rebound in the final quarter of the year as confidence in home purchases gradually recovers as a result of simpler COVID-19 inspections and confidence-boosting measures.”
