New home prices in China continued to slide in January, dipping another 0.3% compared with December as authorities kept rolling out measures to spark demand in the country’s housing market. Reuters reported that on a yearly basis, housing values fell 0.7%, marking the steepest drop seen in ten months and underscoring the persistent pressure on developers and buyers alike.
The breadth of price declines narrowed in January, with fewer provinces registering lower values. Even as the pace of decline slowed in major cities such as Beijing, Guangzhou, and Shenzhen, Shanghai stood out with a 0.4% month over month increase in primary housing demand, signaling that market momentum is becoming uneven across regions.
Analysts cautioned that a full market turnaround is unlikely to occur quickly. Nie Wen, a Shanghai based economist with Hwabao Trust, suggested that a stabilization may take more than a year as supply dynamics, credit conditions, and buyer confidence gradually recalibrate.
January data showed household lending rising sharply, with total new loans to households, principally mortgages, reaching 980.1 billion yuan after 222.1 billion yuan in December. The surge in lending reflects ongoing policy support aimed at keeping credit flowing to homebuyers and developers during a fragile recovery period.
There is also interest from foreign investors that appears to be cooling as concerns about China’s growth trajectory and policy direction persist. While inflows have continued at lower levels, investors remain attentive to how shifting global conditions may influence the country’s housing market and overall economic outlook.
Meanwhile, the European Union has moved to restrict certain Chinese corporate connections with Russia as part of its latest sanctions package. These developments add another layer of complexity to China’s external economic environment and could influence financial conditions for Chinese real estate participants that rely on cross border ties and capital flows.