Housing prices in China fell at an accelerating rate in December, a private study revealed on Sunday. This is largely believed to be the effect of a rise in Covid-19 cases across the country which has resulted in disruptions to economic activities.
According to the study conducted by the China Index Academy (CIA), house prices in 100 cities across China fell for a sixth consecutive month in December. Prices declined by 0.08% in December after falling by 0.06% in November. CIA is one of the largest independent research firms in the country.
While 57 of the 100 surveyed cities experienced a drop in prices over November, 68 reported a decline in December.
Although the Chinese property market got a boost from the government’s decision in early December to drop its strict zero-Covid policy, the rise in Covid cases across the country and the lack of monitoring has had an adverse effect on the market.
“Real estate policies may continue to maintain an accommodative tone with room for policy easing on the supply and demand side in 2023,” the report read. “the housing market is expected to stabilize gradually next year.”