China’s real estate market continues to decline, as the latest data shows. In July, the prices of second-hand homes in 100 major cities fell by 6.58% compared to the same period last year, and dropped by 0.74% month-on-month. This marks 27 consecutive months of decline and the fourth straight month of all cities experiencing price drops.
On August 1, the China Index Research Institute released sales data for new and second-hand residential properties in 100 cities in China for July.
The report states that in July 2024, the average price of second-hand homes in these 100 cities was 14,653 yuan per square meter, with a month-on-month decrease of 0.74%. This decline was 0.01 percentage points larger than in June, showing a continuous trend of monthly decreases for 27 consecutive months. Year-on-year, there was a 6.58% decrease, indicating the ongoing trend of homeowners trading lower prices for sales volume.
Looking at the number of cities where housing prices rose or fell, all 100 cities saw a decline in second-hand housing prices in July, making it the fourth consecutive month of collective price drops in second-hand housing across these cities.
In terms of city tiers, according to data from the Zhuge Research Center, the average price in first-tier cities was 55,593 yuan per square meter, with a 0.5% month-on-month decrease and a 5.74% year-on-year decrease. Second-tier cities had an average price of 17,071 yuan per square meter, with a 0.84% month-on-month decrease and an 8.63% year-on-year decrease. Third and fourth-tier cities had an average price of 9,140 yuan per square meter, with year-on-year and month-on-month decreases of 5.27% and 0.44%, respectively.
In July, the average price of new residential properties was 16,443 yuan per square meter, an increase of 0.13% from the previous month. This increase was 0.02 percentage points smaller than in June, with a 1.64% year-on-year increase. Out of the cities surveyed, 38 saw a month-on-month increase in prices, a decrease of 1 city compared to the previous month. 39 cities experienced month-on-month price decreases, an increase of 4 cities compared to the previous month, while prices remained stable in 23 cities.
In terms of transaction volume, data from Kerui showed that in July, the real estate market experienced a decrease in both supply and demand in key cities. Comparing supply and transactions in the 30 key cities, there was a 25% decrease and 30% decrease respectively, month-on-month, or 18% and 13% decrease year-on-year. The cumulative year-on-year transaction volume for the first seven months decreased by 36%, showing a narrowing of 3% compared to the previous month.