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China’s new home prices fall less in December thanks to promotions and easing of curbs

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BEIJING — China’s new home prices fell more slowly in December than a month earlier, official data showed on Saturday, indicating a stabilization in demand driven by a marginal easing of financing restrictions and promotions by developers. real estate.

Average new home prices in China’s 70 major cities fell 0.2% in December from the previous month, slower than a 0.3% decline in November, Reuters calculated from data published by the National Bureau of Statistics (NBS).

China’s property market has slowed since June 2021 as regulators stepped up their deleveraging campaign against the bloated sector, triggering defaults at some heavily indebted companies.

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In December, authorities and property developers in several cities introduced measures to boost home sales, with local governments offering subsidies to homebuyers and property companies offering discounts.

Monthly prices rose in 15 of 70 cities, compared with nine cities that reported price increases in November.

New home prices rose 2.6% year-on-year in December, less than the 3.0% growth recorded in November.

In a recent note, analysts at Oxford Economics said they expect central and local authorities to take steps to contain property developer default risks, such as increased credit to the sector and the adjustment to the strict ‘three red lines’ policy introduced to curb borrowing by developers. . (Reporting by Liangping Gao and Andrew Galbraith; Editing by Muralikumar Anantharaman)