China's Property Market Continues to Contract in June

China's Property Slump Persists: A Closer Look at June's Housing Data

Understanding the Latest Trends in New Home Prices

In June, China's new home prices registered a month-over-month decrease of 0.27%, a slight acceleration compared to the 0.22% decline observed in the preceding period. On an annual basis, the depreciation in new home values reached 3.2%, showing a marginal improvement from the previous 3.5% year-on-year drop. This suggests that while the pace of decline might be decelerating annually, monthly momentum remains negative.

Analyzing the Performance of Used Home Prices

The market for existing homes also faced headwinds, with used home prices declining by 0.61% month-over-month in June. This figure represents a more pronounced fall than the 0.50% decrease recorded previously, indicating a deepening depreciation in the secondary housing market. The consistent decline in both segments highlights the pervasive weakness within China's property sector.

Insights from Official Statistics on the Property Market

According to the National Bureau of Statistics (NBS) of China, new home prices in all 70 surveyed major cities continued to fall on a month-by-month basis in June. Despite this widespread monthly contraction, the NBS also noted a narrowing of the year-on-year declines. This nuanced perspective suggests that while the market is still retracting, the rate of annual price depreciation is showing signs of stabilization, though a full recovery remains distant.