New house prices in China grew at a slower pace in April compared to the previous month, on the back of sales office closures in many cities due to covid-related lockdowns, reports the South China Morning Post. The average new home price in 100 Chinese cities increased 0.02% to RMB 16,193 ($2,450) per square meter in April, easing from 0.03% growth in March, according to data from China Index Academy, one of the country’s biggest independent real estate research firms.
“Developers’ contracted sales have been significantly affected by the zero-Covid policy adopted by the Chinese government, forcing them to close showrooms,” said Raymond Cheng, head of China and Hong Kong research at CGS-CIMB Securities.
With an increasing number of mainland cities including Shanghai, Jilin and Xian under lockdown at various times since mid-March because of rising Covid-19 cases, real estate agency China Real Estate Information Corporation (CRIC) forecast in a report on April 22 that contracted sales at China’s top 17 developers could fall by 60% last month from a year earlier.
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