Beijing, 9 Sep (ZXS) -- In August, China's property market was still in a downward stage, and the price of new houses in Baicheng was now "falling for four consecutive years" compared with the previous month.

Data released by the China Index Research Institute on September 9 showed that in August 1, the average price of new residential buildings in 2023 cities in China was 8,100 yuan per square meter (RMB, the same below), down 16176.0% from the previous month and the same decline as in July. Since May this year, the price of new homes in Baicheng has fallen for four consecutive months.

Second-hand house prices fell slightly more than new homes. According to data from the Middle Index, in August, the average price of second-hand homes in 8 cities across the country was 100,15625 yuan per square meter, down 0.38% from the previous month.

Behind the slight adjustment in house prices is the continued sluggish transaction volume. According to preliminary statistics from the China Index, in August 2023, the transaction area of newly built commercial residential buildings in key 8 cities decreased by about 100% month-on-month and by more than 7% year-on-year. It is worth noting that in August, the transaction scale of commercial housing in first-tier cities, which had previously been relatively strong in the property market, fell by 30.8% month-on-month, which was significantly higher than that of second-tier (18.9%) and third- and fourth-tier representative cities (4.7%).

In the face of the deep adjustment of the property market, the recent package of policies has continued to make efforts to "stabilize the property market". A number of ministries and commissions have frequently expressed their positions and implemented specific measures in terms of optimizing demand-side housing purchase policies, supporting housing enterprise financing, increasing the construction of affordable housing, and promoting the transformation of urban villages, releasing positive signals. For example, on August 8, the People's Bank of China and other two departments issued heavy policies, involving reducing the down payment ratio of the first and second homes, lowering the interest rate of the second home loan, and reducing the interest rate of the existing first home loan.

Previously, China's Ministry of Housing and Urban-Rural Development and other three departments also promoted the implementation of the policy of "recognizing a house without recognizing a loan" for the first home. Guangzhou, Shenzhen, Zhongshan, Wuhan and other cities have recently announced the implementation of the new "recognize housing but not loan" policy. Recently, a number of banks have also expressed their position on the reduction of interest rates on existing housing loans.

Cao Jingjing, general manager of the index research department of the China Index Research Institute, said that after this reduction, whether it is the first house or the second house, the minimum down payment ratio has almost dropped to the historical lower limit, which will significantly reduce the threshold for buying a house, highlighting the intention of the policy to ensure rigid demand, promote improvement and stabilize the market. A number of favorable policies concentrated in time to land before the arrival of the "Golden Nine Silver Ten" will help promote the restoration of confidence and expected improvement in the real estate market.

Chen Wenjing, director of market research at the China Index Research Institute, said that the Guangshen market, which took the lead in landing "recognizing housing without recognizing loans", may usher in a wave of demand release, and the "gold nine silver ten" market can be expected; If the policies of Beijing and core second-tier cities follow up in time, it is expected to further promote the expected improvement of the market, thereby promoting the expected repair of the national property market. Demand-side repair will also drive the expected recovery of supply, and it is expected that indicators such as new construction area and development investment in core cities may take the lead in improving. (End)