China new home prices rise in January as government signals support

Average prices of new homes across 100 Chinese cities rose in January, while declines in the secondary market narrowed, a private survey showed on Sunday, following renewed government pledges to stabilise the sector.
New home prices rose 0.18% month-on-month, easing from a 0.28% gain in December, according to the China Index Academy, one of the country’s largest property research firms.
Cities including Chengdu, Shanghai and Hangzhou saw the launch of high-end upgraded housing projects in January, lifting both month-on-month and year-on-year prices in first- and second-tier cities, the research firm said.
By contrast, third- and fourth-tier cities continued to work through existing inventory, with prices falling on both a monthly and annual basis.
Prices in the resale market fell 0.85% from the previous month, narrowing from a 0.97% decline in December.
China’s property sector has struggled since tighter regulations triggered a 2021 liquidity crunch for developers, many of which have since defaulted on debt.