China Housing Index

Average new home prices in China's 70 major cities dropped by 1.5 percent year-on-year in December 2022, after a 1.6 percent decline in the previous month, marking the steepest pace since August 2015 amid a property downturn due to developers' mounting debt as well as the impact of surging COVID cases. Among the biggest Chinese cities, prices fell in Tianjin (-4.0% vs 4.0% in November) and Shenzhen (-0.2% after flat reading), while prices in Chongqing saw a flat following a previous 0.7 percent rise. At the same time, prices grew faster in Beijing (5.8% vs 5.7%), Shanghai (4.1% vs 4.0%), and Guangzhou (0.4% vs 0.2%). On a monthly basis, new home prices were down 0.2 percent in December, the same as in November, pointing to the fifth consecutive decrease. The property sector is expected to recover gradually this year, supported by a series of measures for home buyers and developers on the back of Beijing's abrupt reopening.