Chinese house prices fell slightly in December as they rose, slowing down the process by Reuters

© Reuters. FINE PHOTOS: Dormitories and offices appear in Beijing, China, January 10, 2017. REUTERS / Jason Lee

BEIJING (Reuters) – New Chinese prices fell sharply in December more than a month earlier, government figures showed on Saturday, as a slight reduction in inflation, and rising commodity prices helped stabilize.

New house prices in 70 major Chinese cities fell 0.2% in December since last month, slightly more than the 0.3% decline in November, according to Reuters figures from a report released by the National Bureau of Statistics (NBS).

China’s stock market has declined since June 2021 as regulators intensified their campaign to reduce debt, which has led to a lack of trust in some high-debt companies.

But the decline eased as government officials and real estate developers in several cities launched a campaign in December to boost real estate sales, with local governments offering assistance to buyers and real estate companies offering discounts.

Monthly prices rose in 15 of the 70 cities, from the nine cities that also reported price gains in November.

“The home market is slowly declining with the duration of the debt crisis,” says Zhang Dawei, a real estate analyst at Centaline. The cities of the first and second districts will be the first to emerge in the fall, he said.

New house prices rose 2.6% year-on-year in December, slower than the 3.0% growth recorded in November.

In a recent statement, Oxford Economics analysts said they expect state and local authorities to take action to alleviate developers’ risks, such as increasing debt in the sector and correcting strict “three red lines” that have been set up to reduce lending by developers. .

The increase in payrolls provided by those with bonds to the failing elites in China Evergrande Group came at a time when governments are emphasizing the importance of maintaining economic stability.

Yan Yuejin, research director at the E-house China Research and Development Institute in Shanghai, said he expects property plans to move forward easily in the first phase due to the serious economic crisis in the real estate market.

“December data is a good indicator, pointing to house prices so that it does not fall again.”

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