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The Chinese housing market has continued a slowdown that it started by the middle of 2019 during the coronavirus crisis. In July 2021, the year-over-year increase in the country’s 70 major housing markets was only 4.6 percent for new residential buildings, down from double digits from January to June 2019.
The Chinese government was in fact trying to limit fast growth in the country’s housing market and avoid the formation of a housing bubble. Yet, they might not have anticipated the effects of the coronavirus and the general economic slowdown that let sale prices tumble quicker than anticipated.
Price growth reached a low of just 3.8 percent in December 2020 and has since recovered slightly, without returning anywhere near former heights.
This chart shows the monthly year-over-year price increase for new residential buildings in China’s 70 major markets.