On 15 march, the national statistical office published a change in the prices for the sale of the 70 large and medium-sized cities in february. In 70 large and medium-sized cities, the general decline in the price of residential sales for urban goods continued to narrow and to decline in comparison。
The price of the new house is flat
In february, the price of new residential housing in front-line cities fell by 0. 3 per cent, the same level as last month。
Of these, beijing, guangzhou and shenzhen decreased by 0. 1 per cent, 0. 8 per cent and 0. 5 per cent, respectively, and shanghai increased by 0. 2 per cent. The price of new residential housing in the second-line cities decreased by 0. 3 per cent, or 0. 1 percentage points less than last month. The value of residential sales for newly built goods in third-line cities decreased by 0. 4 per cent, the same rate as last month。
In february, owing to relatively high base figures for the same period last year, the prices of new and second-hand residential housing in all line cities increased in comparison to the same year. Prices for the sale of new-commodity housing in front-line cities decreased by 1. 0 per cent over the same period, an increase of 0. 5 percentage points over the previous month. Beijing and shanghai increased by 1. 0 per cent, shanghai by 4. 2 per cent, guangzhou by 4. 6 per cent and shenzhen by 4. 8 per cent. The prices of new residential housing in cities on the second and third lines decreased by 1. 1 per cent and 2. 7 per cent, respectively, a decrease of 0. 7 and 0. 6 percentage points, respectively, over the previous month。
Overall, the new commodity residential price index for 70 cities across the country fell by 0. 36 per cent in february and for nine consecutive months, at the same rate as in january。
The chief researcher of the centre for housing policy research of the planning institute of guangdong province analysed that since the fall of june last year, the 70 city's new housing index ring has shown an overall decline, with a contraction in january this year, a low spring season in february, inactive investment, a break from work, waiting for a marketing strategy to be decided after spring. Of these, the first-line urban ring fell by 0. 30 per cent, the same rate as last month; the second-line ring decreased by 0. 34 per cent, or 0. 02 percentage points less than last month; and the third-line urban ring decreased by 0. 39 per cent, the same rate as last month。
Second-hand room prices continue to shrink
In february, the price of second-hand residential sales in front-line cities decreased by 0. 8 per cent, by 0. 2 percentage points less than last month, by 0. 9 per cent, 0. 6 per cent, 1. 0 per cent and 0. 5 per cent, respectively, in beijing, shanghai, guangzhou and shenzhen. Second-hand residential sales prices in second-line cities decreased by 0. 6 per cent, the same as last month. Second-hand residential sales prices in third-line cities decreased by 0. 6 per cent, by 0. 1 percentage points less than last month。
In february, second-hand residential selling prices in front-line cities decreased by 6. 3 per cent in comparison with the same year, an increase of 1. 4 percentage points from last month, including 5. 3 per cent, 6. 0 per cent, 7. 5 per cent and 6. 1 per cent in beijing, shanghai, guangzhou and shenzhen, respectively. Second- and third-line urban secondary housing prices declined by 5. 1 per cent per year, by 0. 7 and 0. 6 percentage points, respectively, over the previous month。
Overall, in february, the index of second-hand residential price indices fell by 0. 62 per cent in 70 cities and by 0. 06 percentage points in comparison to january, for 10 months in a row. Among them, the first-line urban ring fell by 0. 8 per cent, narrowing by 0. 2 percentage points compared to january, but still at a relatively high level, continuing to lead the country. The 2nd and 3rd ring ratios fell by 0. 60 per cent, the 2nd-line cities fell at the same rate as in january, and the 3rd-line cities fell by about 0. 1 percentage points。
The director-general of research at the institute for evictions has made a sharp leap in the perception that the current decline in the price index of second-hand houses is a narrow one, indicating a positive performance. It is important to note that the price index for second-hand homes has fallen by more than 5 per cent over the same period, which in turn has been a positive indication of the high price of second-hand houses in some cities, including in school districts, which has now fallen and the downside of second-hand homes will continue to increase. The price of used houses has been reduced at the initiative of various locations, resulting in a higher value for the purchase of second-hand houses. In his view, the second-hand house had become a real “pillar” for the new launch of real estate, and its activeness would drive the whole property chain。
First-line cities continue to fall
In february, there were only eight cities, three fewer than in january, and the number of new homes fell again。
The number of cities rising in january increased for the first time since march 2023, but the number rising in february declined again. In february, the number of new houses fell by 59 cities, an increase of three over january. In second-hand rooms, the number of cities falling in 70 in february was the same as last month
New housing in the first-line cities is clearly divided, and second-hand houses are clearly falling. In the area of new housing, the first-line cities continued to divide, with a 0. 2 per cent increase in the new house ring ratio in shanghai in february, a 0. 1 per cent decline in the beijing ring ratio and a ranking of 5th and 12th places in the 70-city rise, compared to -0. 8 per cent and -0. 5 per cent, respectively, in guangzhou and shenzhen. In addition, nanjing's new house ring fell (-1. 1 per cent) and the cities of nanning, xiamen, fuku and shenyang fell first。
With regard to second-hand homes, there was a marked decline in the first-line cities in february, with decreases of 0. 9 per cent, 0. 6 per cent, 1. 0 per cent and 0. 5 per cent, respectively, in beijing, shanghai, shenzhen and guangzhou. In addition, in february, wuhan's second-hand house prices fell in the ring, leading the way in shenyang, xiamen, changchun, fukuzhou and chengdu。
In february, lee wooja analysed the high number of tourists travelling during spring festivals, the decline in interest in commodity house transactions, and the steadyness of developers and second-hand home owners, which continued to expand the decline and reduce incentives to sell houses. As a result, the price index for new and second-hand housing has been narrow or flat。
However, both the level of decline and the number of cities falling are high, the number of new homes falling has increased again, the number of second-hand houses has dropped more and the number of second-hand houses has dropped more than the number of rings falling, which means that trade cases are sold at lower prices。
According to the china-ukrainian second-hand home offer index, the four first-line urban owner price index for the last two weeks (26 february-10 march) continues to be below 50 per cent and has been revised downwards successively. A strategy to reduce prices in order to facilitate transactions as soon as possible is described. Lee woo-ja also indicated that, against the background of the expected decline in housing prices in the market, intermediaries have often mobilized owners to sell houses at reduced prices。
According to lee woo-ja, a reduction in prices that leads to a transaction presupposes that market sentiment remains pessimistic and difficult to sustain a sustained trade rebound. As a result, transactions rebounded in march to inertial, seasonal rebounds, similar to those released in the first quarter of last year for accumulated demand and improved release. This part of the demand was released, and as a result of the weaker price expectations under “down-marketing” and the predatory and competitive relationship between the new and second-hand houses, the market transaction rate would be reduced to normal。
According to the sharp leap forward, the current housing price index continues to show a narrow downward trend in relation to the ring, which is a good indication of the overall trend towards the better. The stable base of the housing price index will be strengthened, taking into account the ongoing policy of good practices and the increased motivation of local feedback on home and house purchases since march。
It is worth noting that the current price of second-hand houses has undergone a deep adjustment, which has been inspired by the fact that second-hand house subscriptions have a relatively high value for money, and by the fact that buyers should be actively guided to subscribe to a number of good second-hand houses, including good homes, good plots, low gross prices or a good supply of schools. Excavating the value of the use behind the second-hand houses is a real boost to the dynamism of the trade in second-hand houses, thus facilitating the smoothing of the chain of “activated second-hand houses – active first-hand houses – resolving the debt problem of housing enterprises – where home ownership is active.”。
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