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Bloomberg
30-06-2025
- Business
- Bloomberg
China Home Sales Slump Persists as Calls Grow for More Stimulus
China's home sales extended their slump in June, putting further strain on the economy and underscoring the impetus for fresh support measures. The value of new-home sales from the 100 largest property companies stood at 339 billion yuan ($47.3 billion), the latest preliminary data from China Real Estate Information Corp. on Monday showed. That represents a 23% fall from a year ago, according to Bloomberg calculations. June's sales follows an 8.6% decline in May. On a monthly basis, however, the latest sales were up 14.7% from May, CRIC said.
Business Times
06-06-2025
- Business
- Business Times
Falling sales offer few signs of end to China's property slump
FALLING property sales over the first five months of 2025 show how China's economically important real estate market remained stuck in a slump this year despite signs of heat in the markets in higher-tier cities. Cumulative sales of China's top 100 property developers from January to May fell 7.1 per cent year-on-year to 1.3 trillion yuan (S$233.2 billion), accelerating from the 6.7 per cent drop for the January-to-April period, according to figures published Saturday by China Real Estate Information Corp (CRIC). The CRIC report measures sales from projects directly managed by the top 100 developers, excluding projects including those run by external partners. Figures released by another data provider for the industry, China Index Holdings (CIH), painted a similar picture. Total sales of the top 100 property developers for the first five months were down 10.8 per cent year-on-year to 1.4 trillion yuan, according to a recent CIH report. In the CIH report, sales included revenue from projects managed by both developers' in-house sales teams and those outsourced. For May alone, sales by top developers fell 8.6 per cent year-on-year to nearly 295 billion yuan, although the total was up 3.5 per cent on a month-on-month basis, according to CRIC figures. The CIH data showed an even steeper year-on-year sales drop of 17.3 per cent for May, with the decline widening from 16.8 per cent in April. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up To put the scale of the downturn in perspective, sales of 1.3 trillion yuan amount to less than 30 per cent of the total made over the first five months of 2021, before the slump began. The May sales figures offer a broader view of a national real estate market that has grown increasingly bifurcated. Analysts have been highlighting the difference in demand between metropolises such as Beijing and Shanghai and in lower-tier Chinese cities. In Shanghai, demand looks to be heating up. According to a report by EH Consulting, a real estate industry research institute, multiple residential projects managed to sell out in a single day in May. In one example, a local subsidiary of developer Greentown China Holdings sold all 120 units of a project on the same day it was put on the market, the report said. The homes sold for 195,000 yuan per square meter, generating nearly 7 billion yuan in revenue. It's a different story in some of China's lesser-known and less wealthy cities. The vast majority of property developments in third and fourth-tier cities have far more supply than demand, said a senior sales executive at a leading property developer who did not wish to be named. Two factors have long helped drive China's property market: the need for new homes and the belief that housing was a sure-fire investment. Since the downturn, however, residential property has lost its appeal as an investment in many third- and fourth-tier cities, the executive said. In addition, basic housing needs have already been met in those areas. With the populations of many of the cities already starting to shrink and with the average household already owning two or three homes, a slowdown in home sales was inevitable 'In the long run, we believe the property market will eventually stabilise,' the executive said. 'But in the near term, market divergence will persist.' Addressing the disparity requires tackling the problem from both the supply and demand sides, market insiders said. The CRIC report noted that the current new housing supply has fallen significantly, particularly in hot markets such as Shanghai, Shenzhen, Hangzhou and Chengdu. The situation has limited the potential for a surge in sales volume in those cities. Changes to government policy could help. The EH Consulting report recommended shifting from broad-based stimulus to more targeted, nuanced regulation over the property market. That would help different parts of the market achieve a better balance between supply and demand that would eventually stabilise prices. CIH expects housing market policy to remain accommodative in June. With the mid-year sales window approaching, property developers are likely to accelerate project launches and increase their marketing efforts, the report said. It added that the market in core cities is expected to continue its recovery, although divergences between cities are likely to continue. CAIXIN GLOBAL
Straits Times
01-06-2025
- Business
- Straits Times
China home sales slump drags on as deflation eats into incomes
The value of new-home sales from the 100 largest property companies slid 8.6 per cent from a year earlier in May. PHOTO: AFP BEIJING - China's residential property sales continued to fall in May, signalling the real estate slump is still weighing on an economy that's under pressure from deflation and trade tensions. The value of new-home sales from the 100 largest property companies slid 8.6 per cent from a year earlier to 294.6 billion yuan (S$52.8 billion), according to calculations based on preliminary data from China Real Estate Information Corp. That follows an 8.7 per cent decline in April. A truce on US tariffs has done little for the world's second-largest economy as falling prices erode corporate profits and employee incomes. That has led to suppressed demand for housing purchases, just as the effects of a stimulus blitz last September start to wear off. 'China's real estate sector hasn't reached a bottom yet,' Wang Ying, a managing director at Fitch Ratings, said last week. 'The majority of residential inventory sits in smaller cities, meaning an inflection point of the sector would only come from a broad rise of income and wealth.' The property market, accounting for roughly a quarter of economic activity at its peak, is where some 70 per cent of China's household wealth is invested. China's top officials have said that a recovery in the property sector will help to shield the country from the US tariff hikes. Yet top authorities have taken a patient approach on real estate policies, seeking the right time to issue more support. In late May, officials reiterated existing programmes for the real estate sector, including urban renewal initiatives. Join ST's Telegram channel and get the latest breaking news delivered to you.
Bloomberg
01-06-2025
- Business
- Bloomberg
China Home Sales Slump Drags On as Deflation Eats Into Incomes
China's residential property sales continued to fall on in May, signaling the real estate slump is still weighing on an economy that's under pressure from deflation and trade tensions. The value of new-home sales from the 100 largest property companies slid 8.6% from a year earlier to 294.6 billion yuan ($40.9 billion), according to calculations based on preliminary data from China Real Estate Information Corp. That follows an 8.7% decline in April.
South China Morning Post
09-02-2025
- Business
- South China Morning Post
Analysts expect China property recovery in 2025 after seeing January improvement
Analysts believe a broad recovery in China's property market would come this year, after new home prices in first-tier cities rose in January, while a decline in the second-hand market slowed. New home prices in China's top-tier cities rose 0.36 per cent in January from a month earlier, according to a report released earlier this month by the China Index Academy, a real estate research firm. 'The year-on-year improvement in sales value shows [better] market sentiment, particularly among homebuyers in large cities,' said Jeff Zhang, an equity analyst at Morningstar. 'We foresee new home prices stabilising in 2025 and ticking up thereafter, but a recovery for existing home prices may take longer.' In Beijing, new home prices rose by 0.09 per cent to an average of 45,621 yuan (US$6,265) per square metre, while prices in Shanghai climbed 0.57 per cent to 57,127 yuan per square metre. On an annualised basis, new home prices in the two cities appreciated 1.2 per cent and 10.7 per cent, respectively. Transaction volume in first-tier cities fell 33 per cent in January from a month earlier to 1.52 million square metres, according to a recent report from the China Real Estate Information Corp. It said this was because businesses paused ahead of the Lunar New Year holiday in late January. But transaction volume rose 56 per cent from a year earlier thanks to a low base of comparison in the year-earlier period. Demand for premium housing in Shanghai was particularly strong, according to a January report from S&P Global, which said 3,100 homes priced at more than 30 million yuan were sold last year. It added that 80 per cent of those were new units, accounting for more than half of China's total premium home sales, it said. 'We anticipate a temporary rebound in the housing and rental markets following the Lunar New Year, as this period is traditionally a quieter time for real estate activity,' said Shi Lulu, director of Asia-Pacific corporate ratings at Fitch Ratings.
