China home sales during Golden Week fall 17% against 2022: Survey

BEIJING – China’s average daily home sales during the recent Golden Week holiday were down 17 per cent, based on floor area, compared with 2022, despite a series of piecemeal support measures to restore confidence in an ailing property market, according to a survey.

China Index Academy said on Saturday that average daily home sales in smaller cities, known as tier-three and tier-four cities, fell 50 per cent during the holiday from Sept 29 to Oct 6, compared with last year, when the holiday fell between Oct 1 and Oct 7.

However, the research firm said new home sales rose 62 per cent in tier-one cities, suggesting that the support measures, including lower mortgage rates and down payments, could be unlocking pockets of demand in the most sought-after areas.

Tier-one cities, including Shanghai, said several weeks ago they would allow people who have fully repaid their previous mortgage or sold their other homes to make down payments of as little as 35 per cent to 40 per cent, compared with 60 per cent to 70 per cent previously.

The number of visits to property showrooms increased slightly during the holiday period, but confidence had not recovered significantly, the research firm said.

The Golden Week holiday is traditionally a peak period for new home sales in China, with developers offering promotions and releasing new properties onto the market.

New home sales declined around 20 per cent year on year in September, the survey also showed. Official data for September will be released on Oct 18.

More support measures could be taken, Citi analysts said in a research note, including through redevelopment of old villages and the resumption of the central bank’s pledged supplementary lending policy.

Confidence in the property sector, which accounts for a quarter of economic activity, has been hit since 2021 when Beijing cracked down on debt accumulation by developers, fuelling a debt crisis. REUTERS