China’s new home prices remain stagnant in January amid property market struggles

China’s new home prices showed no change in January compared to the previous month, highlighting the ongoing difficulties in the country’s property sector despite government intervention.

According to Reuters calculations based on National Bureau of Statistics data,

• prices remained flat month-on-month, mirroring December’s result
• on a year-on-year basis, home prices declined by 5.0%, slightly improving from the 5.3% drop recorded in December.

Efforts to stabilize the market have intensified since the second half of last year, as policymakers introduced measures to support the struggling sector. The downturn, which began in 2021, was triggered by a government crackdown on excessive leverage among developers, leaving many unable to complete pre-sold projects or meet debt obligations. The resulting decline in home sales and weakened buyer confidence continues to weigh on the broader economy, underscoring the challenges in restoring stability to the real estate market.