New House Prices Halved in 31 Second-Tier Cities in Communist China

On November 10th, among 31 second-tier cities, new house prices have fallen year-on-year in 17 cities over the past year, and second-hand home prices have fallen year-on-year in 28 cities.

According to reports, some properties with an average price over ten thousand at the beginning of the year could drop a few thousand yuan to almost half by the end of the year. Industry insiders believe that since July, affected by the industry shutdown events, market confidence has been depressed, and home buyers have been scared. Recently, many real estate projects in Harbin launched purchase concessions, but in the downward trend, the residential land market does not have land trading, but the population outflow, industrial transformation, and housing prices are expected to continue the downturn. In addition, in Wuhan recently, some properties applied for pre-sale certificates, and the cost of putting on a record is also significantly lower than before. In Lanzhou the capital of Gansu Province, the number of new commercial housing units in the region fell for 14 months on a chain and 7 months on a year-on-year basis, according to monitoring data from the China Index Academy. In September, the house prices from 90 square meters to more than 144 square meters were reduced. Many places introduced new policies to boost the property market, but Zero-Covid policies and quarantines would add more hardship to housing prices.