Data released on August 1st shows that prices of second-hand houses in first and second-tier cities in China have continued to decline, marking the 27th consecutive month of month-on-month drops.
On August 1st, the third-party research institution Zhongzhi Research Institute released the “City Price Index Report.” The report revealed that in July 2024, the average price of second-hand residential housing in the top 100 cities in China was 14,653 yuan per square meter, down 0.74% from the previous month. This represents an expansion of 0.01 percentage points compared to June and marks the 27th consecutive month of month-on-month declines in the average price of second-hand residential housing, with a year-on-year decrease of 6.58%.
According to the China Real Estate Index System’s City Price Index, in July, the month-on-month prices of second-hand residential housing in first and second-tier cities dropped by 0.80% and 0.78% respectively. This decline expanded by 0.14 and 0.04 percentage points, respectively, compared to June.
Looking at the number of cities experiencing declines in housing prices, the City Price Index of the China Real Estate Index System shows that in July, 100 cities experienced month-on-month declines in second-hand residential housing prices. This marks the fourth consecutive month of collective declines in prices across the top 100 cities.
Specifically, among 16 cities including Changzhou and Wuhu, the month-on-month decline in the prices of second-hand residential housing exceeded 1%, with Changzhou experiencing the largest drop at 1.55%. 51 cities including Huai’an and Hangzhou saw declines in the range of 0.5% to 1.0%, while 18 cities including Changshu and Changsha experienced declines between 0.3% to 0.5%. Additionally, 15 cities like Zhangzhou and Xiangtan saw declines below 0.3%.
The continuous decline in second-hand house prices in China has left prospective sellers feeling disheartened and helpless.
Chinese blogger Xiaoma recently stated, “In 2019, property prices in Nanjing were very high, with houses over twenty years old still being sold for 30,000 to 40,000 yuan per square meter. Now they are only worth 4,000 to 5,000 yuan per square meter.”
Liaoning media personality Song Yumu recently commented, “In recent years, the real estate market on the mainland has been particularly sluggish, weathering ups and downs. Those selling second-hand houses are the most frustrated. Transactions are sparse. With the market downturn, there are more sellers but fewer buyers. If one is particularly eager to sell, they can only reduce prices drastically, but most people are reluctant to do so.”