China’s new home sales slid 30% on year in Jun; weak recovery in property market to continue in second half – CICC

 

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Mainland China’s new home sales, by unit, fell by about 30% in June from a year earlier, while second-hand home sales ramped up slightly year over year, CICC said in a research note. 

Second-hand home sales in 15 sample cities, by floor area, declined by about 10% in June from a month ago, and the year-on-year rise narrowed to 6%; while new home sales in 58 sample cities increased by about 10% on month but tumbled by 26% from a year ago, the bank said.

Looking ahead, considering the almost 30% year-on-year drop in land sales in the first half of the year on an already low base, home sales performance in ultra-high/high-performance cities with low inventory are expected to stay constrained by supply, it said. 

Sales performance in medium- and low-tier cities, which account for the bulk of the country’s home sales, will still depend on the pace of stabilization of homebuyers’ expectation, it said.