Key facts
- China's resale home prices fell 0.75% month-on-month in June.
- A private survey by China Index Academy reported the accelerated decline in Chinese resale home prices.
- New home prices in China saw a slower increase in June.
- China's property sector continues to face stress despite policy support.
- UK house prices saw no growth for the second consecutive month in June.
- The average UK home price fell slightly to £277,484 in June.
- Rising interest rates are dampening buyer demand in the UK.
- Geopolitical events and oil prices are influencing interest rates in the UK.
- UK property agents predict a slower summer market.
Home prices in both China and the United Kingdom showed signs of weakness in June, with distinct pressures affecting each market. In China, resale home prices declined at an accelerated pace, dropping by 0.75% month-on-month according to a survey by China Index Academy. This indicates a worsening trend in the secondary property market. Concurrently, new home prices in China experienced a slower rate of increase, suggesting a broader slowdown across the property sector. Despite ongoing policy support aimed at stabilizing the market, the sector continues to face significant stress.
Across the globe, the United Kingdom's housing market saw prices stall for the second consecutive month in June. The average home price experienced a slight decrease, reaching £277,484. This stagnation is attributed to a confluence of factors, primarily rising interest rates. These rate increases are themselves influenced by broader economic conditions, including geopolitical events and fluctuating oil prices, which collectively dampen buyer demand. Property agents are forecasting a slower market throughout the summer months as a result of these prevailing conditions.