China new home prices rise in January as government signals support

Average prices of new homes across 100 Chinese cities rose in January, while declines in the secondary market narrowed, a private survey showed on Sunday, following renewed government pledges to stabilise the sector.



New home prices rose 0.18% month-on-month, easing from a 0.28% gain in December, according to the China Index Academy, one of the country's largest property research firms.



Cities including Chengdu, Shanghai and Hangzhou saw the launch of high-end upgraded housing projects in January, lifting both month-on-month and year-on-year prices in first- and second-tier cities, the research firm said.



By contrast, third- and fourth-tier cities continued to work through existing inventory, with prices falling on both a monthly and annual basis.



Prices in the resale market fell 0.85% from the previous month, narrowing from a 0.97% decline in December.



China's property sector has struggled since tighter regulations triggered a 2021 liquidity crunch for developers, many of which have since defaulted on debt.

Local media recently reported that developers are no longer required to report monthly data under the country's "three red lines" policy, signalling an apparent end to rules that triggered the ongoing debt crisis.