China New Home Prices Fall Further in May, Housing Crisis Deepens
New home prices in 70 Chinese cities fell 0.2% month-on-month in May, accelerating from a 0.1% drop in April, while existing home prices posted the largest monthly decline in three months, deepening the country's prolonged property downturn.
China's housing market continues to deteriorate, with new home prices across 70 major cities declining 0.2% month-on-month in May, worsening from a 0.1% drop in April. Year-over-year, prices fell 3.5% for the second consecutive month.
Existing home prices also weakened further, dropping 0.3% month-on-month in May, marking the largest monthly decline in three months. The property sector, which at its peak accounted for roughly 25% of China's economy, has now been a drag on growth for nearly five years.
The ongoing downturn is being compared by some analysts to a '2008 moment' for China's housing sector, as the slump shows no signs of abating.
Source: The Kobeissi Letter