China's home prices steady after stimulus

China's home prices steadied in January, ending a 16-month decline after the government expanded stimulus for the sector.

New-home prices in 70 cities, excluding state-subsidized housing, remained unchanged, compared with a 0.25 percent decline in December, National Bureau of Statistics figures showed yesterday.

In the secondary market, prices fell 0.28 percent, better than the 0.41 percent decline the previous month.

Chinese regulators unveiled a sweeping plan to revive the housing industry, focusing mainly on the supply side by pledging financial support to cash-strapped developers. Since then, officials have taken further steps to stimulate home buyers demand and ensure the sector's stable growth.

January was a key test of demand, as migrant and white-collar workers stuck in cities during Covid lockdowns had their first chance in years to hunt for properties in their hometowns during Chinese New Year.

But sales by the 100 biggest real estate developers continued to slump, down 33 percent from a year earlier, data from China Real Estate Information showed.

Meanwhile, commercial banks were told to allow the prepayment of mortgage loans by residents according to the service contract, the People's Bank of China and the China Banking and Insurance Regulatory Commission said.

This came after Chinese homeowners crowded to pre-pay their mortgage loans amid falling interest rates to reduce their debt, but complained that banks were placing restrictions on the practice.