Post by : Shakul

New home prices in China recorded a slight increase in March, reversing a decline seen in February, according to a private survey. Data from the China Index Academy showed that prices across 100 cities rose by 0.05% month-on-month, supported by seasonal demand, particularly in major urban centres.

The modest recovery was driven by improved supply of higher-quality housing projects in key cities such as Beijing and Shanghai. Analysts noted that increased buyer activity during the traditional spring season helped stabilise the market, though the sustainability of this momentum in the coming months remains uncertain.

China’s property sector has been under pressure since 2020 due to strict government measures to curb excessive borrowing by developers. The resulting liquidity crunch has left many firms struggling with debt repayments and delayed housing projects, contributing to weaker overall market sentiment.

Despite the slight improvement, challenges persist, including high housing inventory, weak employment conditions, and a shift in buyer preference toward second-hand homes. Experts warn that geopolitical uncertainties and broader economic pressures could continue to impact the housing market’s recovery trajectory in 2026.

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