China’s home prices resume growth as COVID-19 impact eases

Home prices in China resumed its growth after stalling in February due to the pandemic. The resurgence implies pent-up demand as the effects of the outbreak steadily eased on property markets.

China has recently lifted curfews and lockdowns as authorities slowly brought the COVID-19 pandemic under control.

Average new home prices in 70 of China’s major cities grew by 0.1% in March from the previous month with figures remaining unchanged for February. The data comes from Reuters’ calculation based on Thursday’s report by the National Bureau of Statistics (NBS).

On a year-on-year basis, home prices grew by 5.3% in March after dropping from a 5.8% uptick in February.

Leading property developers including Evergrande has launched discounts and promotions to bolster home sales. This led to property sales soaring 136.2% last month according to data from researcher CRIC based on the nation’s top 100 developers.

Developers said that sales would resume in April as the world’s second-largest economy is expect to make a major recovery in March. However, analysts cautioned consumers over lingering virus fears and possible job losses.