Data released by real estate research firm China Index Academy (CIA) showed that the average price for new homes across 100 cities rose by 0.15% in June, slowing compared to May (+0.25%), and recording the weakest increase in 5 months. Experts said that the weaker price growth indicates that recent government measures to support the real estate sector have only a limited impact so far.
The CIA also stated that from the beginning of the year (to June) the value of new home sales at China's top 100 real estate companies fell by 41.6% per annum. Meanwhile, in June, the average price of second-hand homes across 100 cities decreased by 0.73% compared to May. It was the 26th straight month of declines.
The Chinese economy struggled to find a solid foothold as the vast property sector, which has failed to respond to a rescue package announced in May, continued to drag on the outlook. At the end of May, the IMF revised its forecast for China's GDP growth for 2024 to 5% from 4.6%, citing a "strong" first quarter. However, the IMF warned that growth in China would slow to 3.3% by 2029 due to an aging population and slower expansion in productivity. As for 2025, the IMF forecasts an economic expansion of 4.5%.