China: Housing market remains depressed in March
House prices in 70 large- and medium-sized cities were unchanged month-on-month in March, according to a weighted average index calculated by Refinitiv from data issued by the National Bureau of Statistics (NBS). The print followed February’s 0.0%.
Meanwhile, house prices increased 1.5% annually in March, down from February’s 2.0% increase. Annual average growth in house prices slowed to 3.5% in March, from 3.7% in the previous month.
Other housing market indicators were also downbeat in the month. In the year to March, sales of commercial buildings, new residential housing starts and real estate developer funding recorded double-digit drops, while national real estate investment rose a mere 0.7%. Despite the easing of government property curbs and the lowering of mortgage rates in recent months in a bid to boost the sector, the housing market is set to remain downbeat in the near term as rolling Covid-19 restrictions continue to depress sentiment.