China's Housing Market Price Decline Accelerates: Peak in September

Notable Decrease in Housing Prices in China

According to the latest data released by China's National Bureau of Statistics, new housing prices in 70 cities, excluding government-subsidized homes, dropped by 0.45% compared to September, marking the most significant decline in the past year.

Sharp Decline in Second-Hand Housing Market

Second-hand housing prices decreased by 0.66%, experiencing the fastest decline in the last 13 months. This situation arises from the effects of a stagnation that has persisted for the past four years.

Negative Impacts on the Chinese Economy

Prolonged price declines are raising concerns about the legitimacy of the real estate market as a wealth storage vehicle, deterring potential buyers. Kelvin Lam, a senior economist at Pantheon Macroeconomics, stated, "The housing sector is still in a stagnant state. Inventories are roughly 1.5 years away from a reasonable level that would balance supply and demand."