Industry News & Insights

28 Nov 2024

China's Housing Market Shows Signs of Stabilisation + Chinese New Tax Breaks

China's Housing Market Shows Signs of Stabilisation + Chinese New Tax Breaks
  1. China's New Home Prices Stabilize as Major Cities Lead the Recovery. October marked the 17th consecutive month of price declines, but the slowdown suggests that recent support measures may be taking effect. Prices across 70 cities fell by 0.5% month-on-month, the slowest drop in seven months, with tier-1 cities like Beijing, Shanghai, Guangzhou, and Shenzhen experiencing milder declines.

  2. Chinese Developers Accelerate Home Sales Amid Shifting Market Sentiment. Government policies and tax adjustments spurred strong October sales and a surge in project launches. The top 100 developers reported a 73% increase in sales compared to September, although supply in Shanghai and Shenzhen fell by 20%.

  3. Renmin University Economists Call for Action on China’s Property Crisis. At a forum, experts emphasized the need for reforms to prevent debt crises, rebuild market confidence, and achieve Beijing's 5% GDP growth target. While rising sales in major cities offer optimism, concerns about declining property prices remain.

  4. China Introduces Tax Breaks to Spur Property Sales in Key Cities. New incentives for first-time and second-home buyers aim to reduce ownership costs and boost transactions in cities like Beijing, Shanghai, Guangzhou, and Shenzhen. This nationwide policy shift is expected to lower transaction costs, unify tax rates across major cities, and accelerate market recovery.

  5. Chinese Developers Tap Billions in Bond Financing as Government Eases Funding. Bond financing by property developers rose 3.2% in October year-on-year, reflecting growing confidence from improved policy support and stimulus measures. The increase comes amid government interventions aimed at revitalizing the property sector and bolstering economic growth.

 


 

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