Recently, the National Bureau of Statistics of China announced the latest housing price data for 70 major cities in August, including Beijing, Shanghai, Guangzhou, and Shenzhen. The data showed a continuous decline in the selling prices of residential properties in first-tier cities, with Beijing experiencing the largest drop nationwide. Analysts point out that these figures prove that the official measures to boost the market have completely failed.
In August, the selling prices of new residential properties in first-tier cities dropped by 0.1%, with Beijing, Guangzhou, and Shenzhen seeing decreases of 0.4%, 0.2%, and 0.4% respectively. In the second-hand housing market, prices in first-tier cities fell by 1.0%, with Beijing, Shanghai, Guangzhou, and Shenzhen dropping by 1.2%, 1.0%, 0.9%, and 0.8% respectively.
Official data indicates that Beijing had the largest decrease in housing prices, both for new and second-hand properties, sparking widespread attention and discussion in the market.
Financial blogger “Tom Financial Perspective” pointed out that the official data shows a further acceleration in the decline of housing prices in China’s four major first-tier cities in August, with the pace significantly faster than in second and third-tier cities. Among them, Beijing experienced the largest drop, possibly marking the first time it led the country’s major cities in price declines historically.
Concrete examples highlight the extent of the price drops. According to public information from the mainland property trading platform “Beike Fang,” a unit in the Anzhenli residential compound in Beijing’s Chaoyang District is currently listed at an average price of 68,000 yuan per square meter. However, a seller’s information shows that a 75-square-meter three-bedroom unit is being sold for only 2.81 million yuan, at an approximate price of 37,000 yuan per square meter. Additionally, a 104-square-meter three-bedroom unit in the Rongze Mansion in Beijing’s Changping District which could be sold for 4.8-4.9 million yuan back in June, was only sold for 3.85 million yuan in August, witnessing a sudden drop of over 1 million yuan within two months, constituting a high decrease rate of 21%.
“Tom Financial Perspective” analyzed that second-hand housing prices in Beijing have been declining continuously since March 2023, with a slight rebound only after the new policy was introduced by the authorities on September 30 last year. However, house prices turned downwards again in April this year, with the decline expanding to 1.2% in August. Officially, in an attempt to stabilize prices, Beijing first eased restrictions on purchases outside the Fourth Ring Road on August 5. However, the post-“full moon” data following this policy does not seem to be ideal.
According to data from multiple authoritative media and institutions, the number of signed contracts for second-hand residential properties in Beijing was 13,331 units in August, a decrease of about 7.8% compared to the 15,575 units in July, and a 7.2% decrease year-on-year from August 2024.
The blogger believes that these data seem to declare that the market-saving policy introduced on August 5 has completely failed.
“Tom Financial Perspective” believes that the pessimism in the Chinese property market can be observed through loan data. Data shows that in August, both monthly and accumulated new housing loans hit a 10-year low, lower than in 2024. New housing loans in August last year had already dropped by 50%, and this year witnessed a further decrease of over 80% on that basis, hitting the lowest level in over a decade, which is alarming.
He stated that this is consistent with the actual feelings of the people. Even in cities like Beijing and Shanghai, houses are almost unsellable unless sellers continue to lower prices on the basis of minimum transaction prices. Many property owners are forced to auction off their properties due to cash flow interruptions, a not uncommon occurrence.
He further explained that the logic behind this phenomenon is not difficult…