Potential homebuyers look at a property model in Yantai, Shandong province. [TANG KE/FOR CHINA DAILY]
BEIJING — China’s property market has seen a strong recovery after a tough year in 2022, as the economy logged palpable expansion at the beginning of 2023 and an array of policies to shore up the sector have taken effect.
In the Jan-Feb period, encouraging signals indicated rising confidence on both ends of supply and demand of the market, a “pillar” of China’s economy, with its added value accounting for 6.1 percent of the country’s gross domestic product last year.
To reinforce the trend of stable growth in the sector, China is setting out to optimize structure on the supply side to defuse risks and address the pressing needs of key groups on the side of demand.
CONFIDENCE FOR STEADY GROWTH
In February, 55 out of 70 large and medium-sized cities saw month-on-month increases in new home prices, up from 36 in January, according to the National Bureau of Statistics (NBS). Meanwhile, 40 cities witnessed higher resale home prices, up from 13 in the previous month.
Warming signs were also seen on the second-hand market as prices went up 0.7 percent and 0.1 percent month on month in first and second-tier cities, respectively, while such prices remained flat in third-tier cities to end a losing streak.
The effect of government policies to stabilize the property market gradually appeared, and the housing demand was further unleashed, said NBS Senior Statistician Sheng Guoqing.
Compared with 2022, a decline in investment and sales in the real estate sector largely narrowed during the first two months of this year. Specifically, the drop in property development investment narrowed by 4.3 percentage points, that for real estate developers’ funds in place shrank by 10.7 percentage points, and