The evolution of new housing prices in China continues in negative territory and reached, in September, the 28th consecutive month of declines. The most recent data from Chinese statistical authorities reveal a persistent slowdown in the real estate sector, at a time when the issue is once again highlighted in the international public debate.
According to the Lusa news agency, official figures for September show that the group of 70 cities assessed recorded a further drop in the prices of new homes. The monthly decline, calculated based on statistics from the Chinese National Bureau of Statistics, shows a more intense pace than that observed in the previous month, consolidating a trend that has continued without interruption for more than two years.
Vast sample with aligned signs
According to the same source, most of the cities included in the analysis showed declines in the value of new housing. The number of falling locations increased compared to the previous month, while rising cases became less frequent, even among large metropolises.
The publication writes that used housing also followed the same direction. Calculations based on official statistics indicate that the second-hand market registered a new monthly decline, higher than that seen in the previous period.
Market where there are almost no exceptions
In the used housing segment, all cities covered recorded declines in the month under analysis, something that contrasts with what was still happening in some previous months, when isolated positive variations appeared.
The same source states that the lack of recovery movements has kept the issue at the center of Beijing’s concerns, which closely monitors market developments due to the weight that housing has on families’ wealth.
Authorities’ response and economic impact
It should be noted that the Chinese government has approved several measures with the aim of halting the deterioration of the sector, ranging from regulatory changes to initiatives aimed at reinforcing buyers’ confidence. Housing continues to be seen as a central asset in families’ economic decisions, which amplifies the effect of market fluctuations.
According to the same source, several analysts consider that the difficulties in real estate are among the factors that have contributed most to the country’s economic slowdown. Estimates released for the total weight of the sector, including indirect effects, suggest that real estate activity represents close to a third of Chinese Gross Domestic Product.
Trajectory that raises questions outside China
After almost two and a half years of successive declines, the trajectory of the Chinese market is closely monitored by international observers. The size of the Chinese economy and the role of the real estate sector draw comparisons with other markets, including European ones, where price behavior has been different.
What will happen in Portugal?
In Portugal, for example, house prices have increased over the last few months. However, last October, the agency cited the Minister of Economy and Territorial Cohesion, Manuel Castro Almeida, who revealed that “at the end of next year differences will begin to be felt” in house prices and housing rents, which could indicate a reversal of the current scenario soon.
Also read:
