China's property market sees stabilization

China’s property market in 70 large and medium-sized cities demonstrated stabilization in November, according to the National Bureau of Statistics. Year-on-year price adjustments for commercial residential units tightened, with first-tier cities—Beijing, Shanghai, Guangzhou, and Shenzhen—seeing a 4.3% decline, down 0.3 percentage points from October. Shanghai notably recorded a 5% increase in new home prices, while second- and third-tier cities also showed reduced drops in both new and second-hand prices. Industry experts, including KK Chiu, CEO of Cushman & Wakefield Greater China, credited proactive fiscal and moderately loose monetary policies for boosting market confidence. Dong Jianguo, vice-minister of housing and urban-rural development, emphasized that policy measures had shifted the market toward stabilization. A lower cost of home purchases and reduced loan pressure on buyers and developers were key factors in improving market activity. Chiu highlighted the need for additional measures, such as managing new land parcel supply and repurposing vacant commercial assets—particularly in offices—to address idle stock. Suggestions included converting properties into elderly homes, affordable housing, or hotels to generate income, potentially attracting long-term investors like insurance companies. Despite progress, Chiu cautioned that external uncertainties require multifaceted efforts to consolidate recovery. Local governments were urged to adopt pragmatic approaches to vacant assets, ensuring they contribute to recurring revenue streams. The market remains on a positive trajectory, but sustained confidence from buyers, developers, and investors is critical to maintaining momentum.