BEIJING
The stagnation in housing prices continues in China amid ongoing debt problems and declining investment in the real estate sector.
According to the housing price index announced by the National Bureau of Statistics (NBS), new house prices increased in only 20 out of the 70 large and medium-sized cities in China in July compared to the previous month, while they remained stable or decreased in 50 of them.
New house prices in Beijing, Shanghai, Guangzhou and Shenzhen, the four most populous cities in the country, which are defined as ‘first-tier cities’, did not increase in July.
New house prices decreased by 0.2% in 31 large- and medium-sized cities defined as ‘second tier’ and by 0.3% in 35 cities defined as ‘third tier’ compared to the previous month.
Second-hand house prices also increased in only six out of 70 cities.
On an annual basis, prices rose 1% in the first tier cities and 0.2% in the second tier, while they fell 1.5% in the third tier.
Real estate investments in China declined by 8.5% in the first seven months of 2023 compared to the same period last year.
