China new residence costs down much less in Dec on promotions, easing curbs By Reuters

© Reuters. FILE PHOTO: Residential and workplace buildings are seen in Beijing, China, January 10, 2017. REUTERS/Jason Lee

BEIJING (Reuters) -China’s new residence costs fell extra slowly in December than a month earlier, official information confirmed on Saturday, as marginal easing on financing curbs, and promotions by property builders helped to stabilise demand.

Common new residence costs in China’s 70 main cities declined 0.2% in December from a month earlier, slower than a 0.3% drop in November, in line with Reuters calculations from information launched by the Nationwide Bureau of Statistics (NBS).

China’s property market has slowed since June 2021 as regulators stepped up their deleveraging marketing campaign in opposition to the bloated sector, triggering defaults at some closely indebted firms.

However the decline moderated as authorities and property builders in a number of cities launched measures in December to spice up residence gross sales, with native governments offering subsidies for patrons and actual property companies providing reductions.

Month-to-month costs picked up in 15 of 70 cities, up from 9 cities that reported value beneficial properties in November.

“The property market is step by step bottoming out with the interval of tightest credit score over,” mentioned Zhang Dawei, chief analyst at property company Centaline. First- and second-tier cities would be the first to emerge from the downturn, he mentioned.

New residence costs rose 2.6% year-on-year in December, slower than the three.0% progress recorded in November.

In a latest word, Oxford Economics analysts mentioned they count on central and native authorities to take steps to comprise dangers from defaults by property builders, akin to rising credit score to the sector and tweaking the strict “three pink traces” coverage launched to curb borrowing by builders.

A fee extension granted by bondholders to beleaguered developer China Evergrande Group got here as authorities more and more emphasise the necessity to keep financial stability.

Yan Yuejin, analysis director of Shanghai-based E-house China Analysis and Improvement Institute mentioned he expects property insurance policies to proceed to ease within the first quarter given the massive financial affect of the actual property market.

“The December information is a constructive signal, pointing to residence costs not falling additional.”

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