China's property market drop may happen at a slower pace this year, said Lian Ping, chair of the China Chief Economists Forum.
In an article in China Real Estate Newspaper, economists led by Lian said big cities such as Shanghai and Hangzhou might take the lead in stabilizing prices for new homes ahead of the rest of the country.
They expect that the annual property sales may fall by around 5 percent due to price cuts and promotions by real estate developers while significantly narrowing from the end of last year.
In the secondary market, a V-shaped reversal may occur as prices are expected to fall the most in the second quarter, they noted, adding that the annual decline will come in around 2 percent, narrowing by one to two percentage points over 2023.
They said whether the market can improve this year depends mainly on whether the supportive policies can reduce the liquidity risks of developers and whether real estate investment rebounds.
Economists expect real estate investment may decline at a slower pace of 6 percent this year.
This came as developers have been speeding up sales with unconventional campaigns to attract potential buyers.
A project in Guangzhou has reportedly launched a batch of units that requires a down payment of only 12 yuan (HK$13.20).
Located in Xintang in the Guangzhou district of Zengcheng, it offers such low down payments for some unfinished three-bedroom units, mainland media reported.
This came after new home prices fell faster at 0.4 percent last month, the largest drop in nine years despite a series of policies to spur sales.
Property sales measured by floor area fell 23 percent last month from a year earlier.
Separately, China's financial regulator said yesterday it would bring all financial activities under supervision to avoid systemic risks.
The National Administration of Financial Regulation said it is actively resolving local debt risks and optimizing regulatory policies for the real estate sector.
