China September new home prices edge up, resale market falls: survey

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BEIJING (Reuters) -China’s new home prices rose at a slower pace in September, traditionally a peak buying month, while resale home prices fell again, as the market struggled to find its footing despite a raft of support measures, a private survey showed on Wednesday.

New home prices grew 0.09% month-on-month versus a 0.2% gain in August, according to China Index Academy, one of the country’s largest property research firms. Resale prices declined 0.74% compared with a 0.76% drop the previous month.

September and October are traditionally popular months for home purchases, with projects usually announced by developers to coincide with expected demand.

China’s property market, which accounted for around a quarter of economic activity at its 2021 peak, has remained mired in a downturn since developers defaulted on loans, leaving behind large inventories of new homes and unfinished projects.

Despite multiple rounds of stimulus policies, including cuts in mortgage rates and the launch of an urban redevelopment programme, the sector has not achieved a sustained recovery.

Analysts in a Reuters poll expect home prices to stabilise no earlier than the second half of 2026 or even 2027, around half a year later than projections made three months earlier.

Weak income expectations, elevated unemployment pressures, and high listings in the secondary market continue to dampen buyer sentiment, analysts say.

As households have seen their wealth diminish amid the property slump, they have tightened their spending. The downturn has eroded business confidence, further weighing on the job market and broader economic recovery.

(Reporting by Liangping Gao and Ryan Woo; Editing by Jacqueline Wong)