By Liangping Gao and Ryan Woo
BEIJING (Reuters) – New home prices in China are likely to fall this year due to limited effect of ongoing government support measures, a Reuters poll showed, with economists predicting the ailing market will need more than a year to bottom out.
The poll, conducted Feb. 20-28, showed new home prices would decline 0.9% in 2024, versus 1.1% growth tipped in a previous poll in November. Prices are likely to grow 0.5% in 2025, versus 1.0% forecast in November.
The property sector was once a key pillar of the world’s second-largest economy but has lurched from one crisis to another since 2021 after a regulatory crackdown on high leverage triggered a liquidity crisis.
Authorities have deployed policies to revive the sector, including the biggest-ever reduction in the benchmark mortgage rate in February, though analysts have seen limited impact.
“Progressive policy relaxation will reduce the market’s sensitivity to…
