New home prices in China rose at a slower pace in August, according to a private survey released on Sunday, as the crisis-stricken property sector continues to grapple with instability despite a range of supportive policies. Data from property researcher China Index Academy showed that the average price for new homes across 100 cities increased by 0.11% from July, a slight deceleration from the 0.13% rise recorded in the previous month.
The property sector, a crucial pillar of China’s economy, has been in turmoil since 2021 following a regulatory crackdown on developers’ high leverage, which sparked a liquidity crisis. Despite a series of stimulus and easing measures from local authorities, efforts to boost sales and liquidity have seen limited success.
In August, 35 cities reported higher home prices, down from 38 in July. China Index Academy noted that as the sector enters the traditional peak season of “Golden September and Silver October,” real estate developers may intensify efforts to promote sales. The academy also suggested that with the further implementation of supportive policies, market activity in core cities could see a slight rebound in the short term.
