China’s home prices rose for a second consecutive month in March, adding to signs that the country’s real estate sector is stabilizing.
(Bloomberg) — China’s home prices rose for a second consecutive month in March, adding to signs that the country’s real estate sector is stabilizing.
New home prices in 70 cities, excluding state-subsidized housing, increased 0.44%, after rising 0.3% in February, the National Bureau of Statistics reported Saturday. Price gains expanded to 0.26% in the secondary market, after climbing 0.12% a month earlier.
China’s economic recovery depends on a lasting rebound in the real estate sector, which remains fragile as cautious households and a shrinking population curtail demand. Development-related investments kept shrinking as of February despite a warm-up in residential sales.
“Demand persisted in March thanks to stimulus policies and the end of Covid curbs, but we have started to see sales momentum weaken in some smaller cities,” China Real Estate Information Corp. analysts led by Yang Kewei wrote in a report before the data release, adding that buyer interest could wane if developers decide to increase prices later in the year.
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