China’s Home Prices Decline at an Accelerated Pace in August, Marking 12th Consecutive Drop

Bloomberg News is reporting today (9-16-22) that home prices in China declined at an accelerated pace in August. The August decline marks the twelfth consecutive month of price depreciation, and highlights how a revival of the country’s real estate market could take much longer than anticipated, despite a flurry of government policies meant to support the housing market.

According to data released by China’s National Bureau of Statistics, new-home prices in 70 cities, excluding state-subsidized housing, dropped 0.29% month-over-month in August. This follows a 0.11% monthly decline in July. Year-over-year, prices have declined 2.1%—the most in seven years.

China’s $2.4 trillion new-home market is showing few signs of recovery, adding to the slowing growth in the world’s second largest economy. Other information released on Friday showed residential sales fell about 30% since the start of 2022, while property investment shrank more than 7%.


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