According to Bloomberg, China’s home sales kept decreasing while housing prices dropped in November, challenging the regime’s effort to handle the crisis in the property market. 

The news outlet cited data from China Real Estate Information Corp, reporting that new-home sales of the top 100 developers fell to nearly $79 billion, a yearly 25.5% decline in November. The figure in October was a 28% fall. 

A survey from an independent real estate research firm, China Index Academy, also indicates that home sales volume by floor areas in 100 cities fell nearly 30 % from a year ago, partly due to COVID-controlled measures.

In addition, the survey shows that China’s new home prices dropped to 0.06% lower in November than in October, compared with a monthly decline of 0.01%. This is a fifth month’s decline in new home prices. And 57 out of 100 cities suffered new-home prices lower from October. 

Bloomberg reported that China announced a 16-point plan last month to support the troubled real estate sector. State-owned banks promised at least $180 billion in funding for developers. Authorities this week lifted a restriction for real estate firms to raise capital through stock offerings and widened a program allowing them to issue state-backed bonds.

According to a Reuters poll from economists, China’s new-home prices will keep falling until the first half of next year. They forecast that there will be no further rescue package nor relaxing of COVID restrictions for the sector next year.

Not just the real estate market, China’s economy shows no sign of recovery as the country’s factory and services activities contracted further in November to a seven-month low. The disappointing data came as record numbers of COVID cases surged under the country’s controversial zero-COVID policy, hurting the economy’s weak outlook.

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