(Yicai Global) Jan. 4 -- The squeeze on China’s real estate market intensified last year, with new home prices in 100 major cities falling for the first time in nearly eight years, according to a property research institute.

New homes prices in the cities dipped 0.02 percent in 2022, the first decline since 2014, while pre-owned house prices fell 0.77 percent, the China Index Academy noted in an annual report.

The market was relatively stable in the first half, but pressures increased in the second half. Average prices of new and second-hand homes fell further last month, declining 0.08 percent and 0.22 percent, respectively, from November to CNY16,177 (USD2,350) and CNY15,876 per square meter, the report showed.

The scale of new home sales in the 100 cities was also the lowest since 2015. The average monthly transaction area fell 36.2 percent over the previous year to 30.36 million square meters, with tier-one cities witnessing a 23.7 percent decline, tier-two cities down 38.6 percent, and tier-three cities falling 34.8 percent.

China has unveiled policies to stimulate the property market in recent months, but the results are not yet obvious, and the decline has not fundamentally changed yet, said Chen Wenjing, research director of the Index Division of China Index Academy. This year’s sales may be roughly the same as last year, Chen added.

With looser Covid-19 controls, a gradual economic recovery, and the steady emergence of policy-easing effects, market confidence is expected to recover. The property market is expected to gradually steady this year, but it may take longer, according to the report.

Editor: Peter Thomas