Prices of new homes in 100 cities in China continued to rise in October, while second-hand home prices fell

China News Service, Beijing, November 1 (Reporter Pang Wuжить) In October, the real estate market in China's major cities continued to see a steady and slight increase in new home prices and a decline in second-hand home prices.

Data released by the China Index Research Institute on November 1 showed that in October, high-quality real estate properties in key cities such as Shanghai and Beijing accelerated their entry into the market, driving the price of new homes in 100 cities to continue a structural upward trend. The average price of new homes in 100 cities was 17,316 yuan (RMB, the same below) per square meter, up 0.18% month-on-month and 2.02% year-on-year. The transaction volume of the second-hand housing market in Baicheng maintained a year-on-year growth, but the price adjustment trend continued. In that month, the average price of second-hand housing in Baicheng was 12,376 yuan per square meter, a month-on-month decrease of 0.61%, and a year-on-year decrease of 6.72%.

Housing prices in core cities have remained relatively strong. In October, the price of new residences in first-tier cities increased by 0.41% month-on-month and 5.08% year-on-year; the prices of new residences in second-tier cities increased by 0.13% month-on-month and 1.68% year-on-year; the prices of new residences in third- and fourth-tier cities fell by 0.1% month-on-month and 2.01% year-on-year. In October, second-hand housing prices in first-, second-, and third- and fourth-tier representative cities fell by 0.53%, 0.72%, and 0.54% respectively month-on-month.

In October, the reform of the commercial housing sales system entered a period of intensive implementation of detailed rules, and cities such as Tianjin, Hangzhou, Shenzhen, Ningbo, Suzhou, Hefei, and Chengdu successively issued implementation opinions. That month, Shenzhen, Tianjin, Hangzhou, Dongguan and other places optimized their housing provident fund policies; among them, Hangzhou increased the increase in the provident fund loan limit for families with multiple children from 50% to 60%, and the upper limit of the loan limit to 3.24 million yuan.

Looking forward to the end of the year, China Index Research Institute believes that the interest rate discount policy for home purchase loans will help reduce residents’ home purchase costs. Combined with the year-end sales promotions of real estate companies and the entry of high-quality projects in core cities, it is expected to provide certain support for new home transactions. Second-hand house transactions are expected to maintain a certain level of activity, but current market expectations are weak, and second-hand house prices are expected to maintain a volatile adjustment trend. In addition, the agency pointed out that the impact of the reform of the commercial housing sales system on the development capital turnover and investment decisions of real estate companies will be gradually reflected with the development of new projects. The performance of the land market at the end of this year and in 2027 deserves attention.