(correct about 23 months in the third paragraph instead of 23 months)
BEIJING (Reuters) – The stock of new homes in China’s smaller cities has reached its highest level since the end of August, according to a report by an independent consultancy firm The number of new unsold homes in the city rose 5% year over year. Real Estate Information Corporation (CRIC) monitors 23 Chinese cities.
Currently offering to developers 23 Months to sell new homes nationwide and in some smaller cities for more than 50 months, the CRIC said in a report released Wednesday.
Small cities generally account for about half of all unsold new homes in China. CRIC declined to comment when Reuters asked for more details.
China’s property market has repeatedly dealt with crises since 2020, with problems worsening in August due to boycotts of mortgages and developers’ data show earlier this month Financial stress has further damaged confidence in the sector, data showed.
Weak demand in smaller cities dragged down prices as indebted developers continued to slow deliveries, data showed.
CRIC report shows that developers in second-tier cities, including some provincial capitals, are also struggling to find buyers and are moving around 18 Monthly sale.
The eastern city of Qingdao and the central city of Wuhan both reported more than 20 the number of new houses for sale in 10,000 square meters, ranking first among the cities monitored by Cracker8 Month-to-month year-on-year growth in first-tier cities CRIC said new homes were sold in cities such as Beijing, Shanghai, Guangzhou and Shenzhen for nearly 13 months as people tend to launch new projects.
Nationwide, housing stock rose 3% to 587.200,000 square meters, according to CRIC. This is equivalent to about 6.5 million typical Chinese dwellings, each 90 square meters.
Housing stock has been on the rise since at least the medium term 2020 when policymakers started stepping in to cut the excess debt held by developers.
As of August, there were 6.1 billion square meters of housing projects under construction, according to the China Bureau of Statistics.
CRIC said the market will continue to bottom out, in Home sales are likely to decline in September, the traditional peak buying season.
“Overall inventories are likely to remain on an upward trend,” it said.
