China's Property Market Remains Mired in Slump

Of the cities monitored by the National Bureau of Statistics, 49 reported month-on-month price drops, a marginal improvement from the 52 cities seen in May. Year-over-year figures show a 3.5% decline, with 66 cities posting annual losses. Despite the slight moderation in price movement, the fundamental indicators of industry health remain grim.

Investment data paints a starker picture of the sector’s contraction. Property investment plunged 18.0% during the first half of the year, a sharper decline than the 16.2% drop recorded through May. Construction starts followed a similar downward trajectory, sinking 23.4% compared to the same period last year. While home sales by value showed a minor improvement, falling 13.7% against the 14.1% decline observed earlier in the year, the weight of the slump continues to exert significant pressure on the national economy.