The latest data analysis released by the China Wei Real Estate Research Institute shows that the half-month month-on-month index of housing prices in China in December generally showed a downward trend, indicating that confidence in the real estate market is still declining, and it is expected that housing prices will continue to fall in the future.
On January 10, China Wei Real Estate Research Institute released the “Housing Price Dynamic Analysis Report” for the second half of December 2024, covering 90 cities.
The report reveals that as of December 31, 2024, the half-month month-on-month index of housing prices in the Chinese real estate market generally showed a downward trend, indicating a short-term decline in housing prices.
In first-tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen, the half-month month-on-month indices were -0.29%, -0.4%, -0.44%, and -0.21%, respectively, demonstrating a slight decline in housing prices. Second-tier cities like Chengdu, Hangzhou, Wuhan, and Xi’an had indices of -0.17%, -0.33%, -0.81%, and -0.5%, respectively, also showing a downward trend in housing prices. For third-tier cities like Baoding, Ganzhou, Haikou, Huzhou, and Linyi, the half-month month-on-month indices were -0.92, -0.71, -0.6, -0.91, -0.71; and for fourth-tier cities like Anqing, Baoji, Beihai, Dazhou, and Xianyang, the indices were -0.69, -0.56, -0.56, -0.87, -1.18. Housing prices in third and fourth-tier cities experienced a larger drop, indicating insufficient market confidence.
In terms of the economic index, first-tier cities like Beijing, Shanghai, Guangzhou, and Shenzhen had relatively higher economic indices, while second-tier cities also showed relatively stronger market confidence. However, third and fourth-tier cities generally had lower economic indices, indicating weaker market confidence.
The report indicates that compared to the data on November 30, the half-month month-on-month index of housing prices on December 31 generally decreased. This trend is prevalent nationwide, and based on the data from December 31, it is expected that housing prices across the country will decline, and market confidence will weaken. In the short term, housing prices may continue to face downward pressure. While housing prices in first-tier cities and some second-tier cities may remain relatively stable, third and fourth-tier cities, due to weaker market confidence, may face greater adjustment pressures.
The Wei Real Estate Index (an upgraded version of the big data housing price index) is the first new type of housing price index based on housing big data and repeat transaction methods. Compiled and calculated monthly by the Wei Real Estate Big Data and Artificial Intelligence Institute and the Housing Big Data Joint Laboratory, it is more closely aligned with the real feelings of residents towards the rise and fall of housing prices.