The decline in property prices has slowed down

After the regulation of the property market in some places in the Mainland was loosened, the mainland property market showed signs of stabilization. The Institute of Finance and Economics of the Chinese Academy of Social Sciences recently published the “Monthly Analysis Report on China’s Housing Market Development” in January, which showed that the decline in property prices has slowed down, and the volume of housing transactions in key cities has continued to rise, and it is recommended that the housing market should not be speculated. Next, fine-tune the policy according to the market situation.

The report also showed that the number of cities with falling property prices decreased last month, and the rate of decline in property prices in first- and second-tier cities significantly slowed down. At the same time as the benign correction of property prices, the volume of second-hand housing in key cities continued to increase. The overall prices of the third and fourth-tier buildings continued to fall, and the rate of decline was slightly accelerated.

According to the report, the driving force for rising property prices in first- and second-tier cities coexists with the pressure of falling. Once the external economy improves, some first- and second-tier cities may take the lead in slowly picking up the property market. In the third- and fourth-tier cities with low investment speculative demand, property prices will continue to adjust downwards in the short term.

The Academy of Social Sciences appeals to maintain stable building control

The report suggests that the continuation and stability of the regulatory policy should be maintained and investment speculation should continue to be curbed. In addition, because the lack of housing is the main contradiction in large cities, the housing demand management policy should not be revoked. However, under the premise of “staying and not speculating”, we can strengthen the control of the flow of various types of credit funds in accordance with the market fine-tuning policy.

The report also recommends continuing to support the first-time home buyers and residents who need to improve the housing environment, and steadily promote reforms in areas such as the integration of basic public services.