Cranes are seen at a construction site of a housing complex in Beijing on Thursday. Photo: VCG

The prices for new commercial housing in the 70 surveyed cities in China remained in growth territory but at a slower pace in April, compared with March, data from the National Bureau of Statistics (NBS) showed on Wednesday.

Experts noted that the figures for urban housing represented a rebound of domestic real estate prices that has remain unchanged, but that the pace of the sector's recovery has been slower than expected.

Data showed that the overall price growth rate of newly-finished housing, among the 70 surveyed large- and medium- cities, fell in April month-on-month. The selling prices for new commercial housing in first-tier mega cities like Beijing, Shenzhen, Guangzhou and Shanghai increased 0.4 percent month-on-month, 0.1 percentage points higher than March.

The prices rose 0.4 percent in second-tier cities and 0.2 percent in third-tier cites, while the growth rate is expected to fall by 0.2 percentage points for second-tier cities and 0.1 percentage points for third-tier cities in the coming months.

The indicators are still heading to a positive direction, signaling a favorable environment for a stable recovery of housing prices and confidence, while it is important to prevent the market from losing momentum, Yan Yuejin, research director at Shanghai-based E-house China R&D Institute, said on Wednesday.

The increase of sales prices for second-hand housing in first-tier cities fell 0.3 percentage points to a month-on-month increase of 0.2 percent, and the figure turned flat from the previous increase for second- and third-tier cities.

Yan said that localities nationwide should actively resolve issues impacting second-hand housing transactions, including taxes and fees, in order to promote the revitalization of the second-hand housing market.

In annualized terms, the April home prices in first-tier cities grew, while the prices declined across second- and third-tier cities slowed, data from the NBS showed.

China's real estate market experienced a significant downturn in 2022, mainly because of the COVID-related pandemic restrictions. The overall situation has gradually improved after the implementation of targeted policies, NBS spokesperson Fu Linghui said at a press conference on Wednesday.

For instance, total sales of commercial housing procies in the first four months decreased 0.4 percent year-on-year while the decline narrowed 1.4 percentage points compared with the first three months, said Fu. 

Fu added that the financial strain on real estate enterprises has also been eased amid improved market conditions.

However, Fu noted that the property sector is still in a period of adjustment, vowing for continued efforts to further stabilize the market, which can be achieved through accelerating economic recovery and improved market expectations.

China's fixed investment on urban properties dropped 6.2 percent year-on-year from January to April, NBS data showed on Wednesday.

Global Times