China’s property market displayed mixed performance in May, with new home prices in major cities showing resilience while the secondary market continued its downward trend, according to the latest China Index Academy report.
New Home Market Highlights
The average new home price across 100 cities reached 16,815 yuan per square meter in May, marking a 0.30% month-on-month increase and 2.56% year-on-year growth. The market showed clear stratification:
- Tier-1 cities: 0.90% monthly increase (Shanghai led with 1.47% growth)
- Tier-2 cities: Marginal 0.06% rise
- Tier-3/4 cities: 0.11% decline
Among the 100 surveyed cities:
- 33 recorded price increases (Shanghai +1.47%, Guangzhou +1.25%)
- 13 maintained stable prices
- 54 saw declines (Zhuhai -1.13% being most significant)
Secondary Market Dynamics
The resale housing market remained under pressure:
- Average price: 13,794 yuan/sqm (-0.71% MoM, -7.24% YoY)
- All 100 cities recorded monthly declines
- 20 cities saw drops exceeding 1% (Yancheng -1.55% most severe)
- Chengdu showed relative resilience with only 0.10% decrease
Policy Support and Market Outlook
Recent government measures have provided market support:
- May interest rate cuts on mortgages and housing provident fund loans
- Coordinated policy signals to stabilize the market
- Temporary easing of trade tensions potentially improving sentiment
Looking ahead to June:
- Policy environment expected to remain accommodative
- Key focus on implementation of urban renewal programs
- Developers likely to increase promotions for mid-year sales
- Market divergence between cities and projects to persist
The report concludes that while core cities may maintain recovery momentum, the overall market will continue exhibiting significant regional and segment variations in the coming months.
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