We take a dive into real estate in this issue and find a surprising and concerning data point around Shenzhen’s housing market.
Real Estate
Home Price YoY changes
Zero cities are seeing existing home price increases YoY 😓
13 cities seeing new home price increases YoY
Unsurprisingly, confidence remains subdued. Here is above YoY increased price city count with NBS confidence survey. Long-time readers know we believe home price recovery will help bring confidence back. However, a turn in the housing market looks very unlikely in the near-term.
2 cities saw existing home prices increase month-on-month.
8 cities saw new home price increases MoM.
Residential floor space for sale
Residential floor space for sale jumped over 20% again in Jan+Feb of 2024, continuing a trend of 3 years >20% and 5 years >10%.
Residential sales (by floor space) remains on it’s worst downturn. Sales by square meter have fallen from a trailing-12-month peak of 1.72 billion sqm in July’2021 to 0.91 billion in most recent February, a decline of 47%.