JPMorgan Econ FI-China housing Continuous price correction Explicit housing ...-109228715

AsiaPacificEconomicResearch15July2024JPMORGANwww.jpmorganmarkets.comEmergingMarketsAsia,EconomicandPolicyResearchTingtingGe(852)2800-0143tingting.ge@jpmorgan.comHaibinZhu(852)2800-7039haibin.zhu@jpmorgan.comGraceNg(852)2800-7002grace.h.ng@jpmorgan.comJiYan(852)2800-7673ji.yan@jpmorgan.comJPMorganChaseBank,N.A.,HongKongBranchThedeclineintheNBS70-cityhomepricesremainselevated,thoughmarginallylessonthemonthforsecondaryhousingwiththisyear’sfirstsequentialgainforBeijingandShanghai.Newhomepricesweredown4.9%oyaor0.7%m/mnsa,andsecondaryhomepricesweredown7.9%oyaor0.9%m/mnsa.Itfollowsthe4.3%oyaor0.7%m/mfallfornewhomeprices,and7.5%oyaor1.0%m/mfallforsecondaryhomepricesinMay.Comparedtothepreviousmonth,newhomepricesdeclinedin64citiesinJune(vs68citiesinMay),increasedin4cities(vs2citiesinMay),andstayedunchangedintheremainingtwocities.Acrosscitytiers,newhomepricesfell0.5%m/minTier-1cities(vs-0.7%May),withcontinuedoutperformanceofShanghai(+0.4%),anda0.6%,1.2%and0.7%fallinBeijing,GuangzhouandShenzhen.Newhomepricesalsodropped0.7%m/minTier-2cities(unchangedfromMay)and0.6%inTier-3cities(vs.-0.8%May).Asforthe70-citysecondaryhomeprice,itdropped0.4%m/mnsainTier-1cities,narrowingfrom-1.2%inMay,withthefirstsequentialgainat0.2%and0.5%forBeijingandShanghaithisyear.Meanwhile,secondaryhomepricesdeclined0.9%m/minbothTier-2andTier-3cities....