Overview
- Official data show new-home prices in 70 cities fell 0.28% month on month in February, improving from a 0.37% drop in January.
- Resale values declined 0.43% on the month, the smallest fall in ten months, signaling a softer downturn in the secondary market.
- First-tier new-home prices were flat on the month, with Beijing and Shanghai up 0.2%, Guangzhou steady, and Shenzhen down 0.3%; across 70 cities, prices rose in 10 and were unchanged in 7.
- Authorities have rolled out city-specific support, including a VAT cut on quick resales, looser purchase rules in Shanghai and Beijing, and a pledge to control new supply and reduce inventory.
- Citigroup reports early gains in used-home transactions and expects a spring sales rebound, though others such as UBS’s John Lam warn prices may keep falling, leaving March–April as the key test.