China home sales decline again as stimulus wanes

China's residential sales resumed falling in January, suggesting the property sector still has some way to go before it can show a sustained recovery. The value of new-home sales from the 100 biggest real estate companies dropped 3.2% from a year earlier to 227.6 billion yuan ($31.4 billion), after being flat in December, according to preliminary data from China Real Estate Information Corp.

Beijing is struggling to revive the property market amid weak domestic demand and a worsening job situation. While the housing sector has picked up modestly on the back of government support, improvements have mostly been in the second-hand market, with buyers worried about developers' ability to finish projects on time.

"New-home sales will likely see lingering challenges in 2025," said Cao Jingjing, a researcher at China Index Holdings. "Homebuyers' outlook for their income hasn't materially improved, and sales in the used-home market have squeezed the new-residence sector."


The January fall may have been worsened by an unfavorable comparison with last year, when the Lunar New Year holiday fell in February. This year, China began an eight-day holiday on January 28.

China unleashed a raft of measures to boost the residential market in recent months, including cutting borrowing costs on existing mortgages, relaxing buying curbs in big cities and lowering taxes on home purchases. More efforts may follow as Beijing tries to shore up an economy facing the threat of US tariffs under President Donald Trump.