China’s new home prices fell 3.3% year-on-year in June
China’s new home prices continued to decline, marking the fourth consecutive year of decreases. The decline was 3.3% year-on-year in June, a slight improvement from the 3.5% decline in May.
The month-on-month decline also eased, with prices falling 0.1% in June compared to a 0.2% decline in the prior month. However, the broader trend remains negative, with only a handful of major cities recording year-on-year price gains.
The decline in home prices has contributed to a negative wealth effect, weighing on consumer sentiment since 2021. This complicates efforts to shift growth toward domestic consumption, with developer investment, land sales revenue, and retail spending remaining key indicators of the market’s stability.
The secondary-market prices across 100 major cities also fell further in June, with the majority of cities tracked recording declines.