China Property Market Stabilizes in January

Average prices of new homes across 100 Chinese cities rose by 0.18% month-on-month in January, while declines in the secondary market narrowed to 0.85%. This follows renewed government pledges to stabilize the property sector, which has struggled since tighter regulations in 2021 led to a liquidity crunch for developers. The China Index Academy reported these figures, noting that first- and second-tier cities saw price increases due to high-end housing projects, while third- and fourth-tier cities continued to work through inventory. Local media reports suggest an apparent end to the 'three red lines' policy, which triggered the debt crisis. The China===Chinese Communist Party's official journal, China===Qiushi, also called for policymakers to shorten the adjustment period and provide support to the sector. Sales are expected to slow in February due to the Spring Festival holiday but pick up in March.