China's residential property market is showing tentative signs of recovery as government support measures gradually gain traction, according to June data released by the National Bureau of Statistics (NBS). Prices for new commercial homes in 70 major cities declined at a slower annual pace compared to previous months, with first-tier cities leading the moderation trend.
In Beijing, Shanghai, Guangzhou, and Shenzhen, new home prices fell 1.4% year-on-year in June – a 0.3 percentage point improvement from May's contraction. The figures mark the second consecutive month of easing declines, suggesting policymakers' efforts to stabilize one of China's most crucial economic sectors are beginning to yield results.
"The continuous rollout of a comprehensive package of policies has significantly improved the confidence of all parties in the market," said Yu Xiaofen, dean of the China Housing and Real Estate Research Institute at Zhejiang University of Technology. Analysts point to recent measures including reduced mortgage rates, relaxed purchase restrictions, and targeted financing support for developers as key drivers of the stabilization.
While challenges persist in lower-tier cities, the improvement in major urban centers signals potential opportunities for investors tracking Asia's second-largest economy. The development also carries implications for cross-sector economic growth, given real estate's traditional role as a pillar of Chinese domestic demand.
