Despite continuous drops, Chinese property prices are still experiencing a downward trend. The latest data shows that in July, among the 70 large and medium-sized cities, the prices of commercial housing in first, second, and third-tier cities continued to decline significantly compared to the same period last year.
On August 17, data released by the National Bureau of Statistics of the Communist Party of China revealed that in July, among the 70 large and medium-sized cities, the sales prices of residential properties in first-tier cities increased overall compared to the previous month, while prices in second and third-tier cities decreased. The prices in first, second, and third-tier cities continued to see a significant year-on-year decrease.
In terms of year-on-year comparison, in July, the sales prices of new commercial residential properties in first-tier cities decreased by 1.1%. Specifically, Beijing, Guangzhou, and Shenzhen saw declines of 2.3%, 2.2%, and 2.9% respectively, while Shanghai saw an increase of 3.0%. The sales prices of new commercial residential properties in second-tier cities decreased by 2.8%, and by 4.2% in third-tier cities.
The sales prices of second-hand residential properties in first-tier cities saw a year-on-year decrease of 3.7%, with Beijing, Shanghai, Guangzhou, and Shenzhen experiencing declines of 4.5%, 2.0%, 4.7%, and 3.6% respectively. In second and third-tier cities, the sales prices of second-hand residential properties decreased by 5.1% and 5.8% respectively.
Regarding month-on-month comparison, in July, the sales prices of new commercial residential properties in first-tier cities changed from a 0.1% increase in the previous month to remaining stable. Shanghai, Guangzhou, and Shenzhen saw increases of 0.2%, 0.1%, and 0.2% respectively, while Beijing saw a decrease of 0.3%. The sales prices of new commercial residential properties in second-tier cities changed from being stable to a decrease of 0.1% month-on-month. The sales prices in third-tier cities saw a month-on-month decrease of 0.3%, the same as the previous month.
The sales prices of second-hand residential properties in first-tier cities showed a month-on-month increase of 0.2%, a decrease of 0.1 percentage point compared to the previous month. Shanghai, Guangzhou, and Shenzhen saw increases of 0.3%, 0.4%, and 0.2% respectively, while Beijing remained unchanged. In second and third-tier cities, the sales prices of second-hand residential properties decreased by 0.3% and 0.4% respectively, with decreases remaining the same as the previous month.
Furthermore, data released by the National Bureau of Statistics also revealed that from January to July, national real estate development investment decreased by 19.2% year-on-year (an increase of 1.2 percentage points compared to January to June), with residential investment falling by 19.1%; the year-on-year decline in sales area of new commercial housing expanded to 11.8%, including a 12.7% decrease in residential sales area.
However, it is important to note that official Communist Party of China data often conceals unfavorable situations, suggesting that the actual data may be even worse.