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

Significant Decrease in Housing Prices in China

According to the latest data released by China's National Bureau of Statistics, excluding state-supported housing, new housing prices in 70 cities decreased by 0.45% compared to September, marking the sharpest decline in the past year.

Sharp Decline in the Second-Hand Housing Market

Second-hand housing prices also showed a decrease of 0.66% and experienced the fastest decline in the last 13 months. This situation has arisen due to the effects of a prolonged stagnation lasting four years.

Negative Effects on the Chinese Economy

Long-term price declines are raising concerns about the validity of the real estate market as a wealth storage vehicle, which is discouraging buyers. Kelvin Lam, a senior economist at Pantheon Macroeconomics, stated, "The housing sector is still sluggish. Stocks are about 1.5 years away from a reasonable level that will balance supply and demand."