Home prices in China dropped more in April than in March. New-home prices in 70 cities went down by 0.12 per cent, compared to a 0.08 per cent drop the month before. Prices of used homes also fell by 0.41 per cent, which was worse than the 0.23 per cent drop in March. These numbers come from the National Bureau of Statistics.
This shows that China’s property market is still weak, even though there were hopes it might improve.
Trade War Making Things Worse
The ongoing trade war between China and the US is making things harder. Even though the two countries reached a short truce recently, the stress from tariffs is still high. The problem is not just the tariffs, but the uncertainty they bring to the economy.
Because many Chinese people work in export-related jobs, fewer of them are confident about buying homes now. This is hurting the housing market even more.
Yearly Declines Are Slowing
Looking at prices from a year ago, the situation is still bad, but a little better.
New-home prices fell by 4.55 per cent from last year, better than the 4.99 per cent drop in March.
Used-home prices dropped 6.76 per cent, compared to 7.25 per cent in March.
So, while prices are still going down, the fall is not as steep as before.
Government Plans to Support Housing
Chinese leaders know the housing market is a big part of the economy. Last month, they said they would take a patient and careful approach to support growth.
They plan to:
- Renovate urban villages and old homes
- Help local governments buy unsold homes
- Continue existing support programs for housing
- The goal is to bring back confidence in the market.
A Shift to Consumer Support
The government is also trying to boost spending by:
- Giving income support to families
- Offering consumption subsidies
Strengthening social safety nets
Experts like Edward Chan from S&P Global Ratings say that helping the housing market is key to making people feel more confident about spending money. This is part of China’s new plan to grow its economy through consumer spending, not just exports.
