According to data released by the National Bureau of Statistics, in May 2024, the sales price of newly built commercial housing in China's first-tier cities fell by 3.2% year-on-year, a decline that expanded 0.7 percentage points from the previous month. The sales price of newly-built commercial housing in second- and third-tier cities fell by 3.7% and 3.7% year-on-year respectively. 4.9%, the decline expanded by 0.8 and 0.7 percentage points respectively from the previous month, and house prices in a few cities increased.

The price performance of second-hand housing is also unsatisfactory. The sales price of second-hand housing in first-tier cities fell by 1.2% month-on-month, a decline that was 0.1 percentage points larger than the previous month, and a year-on-year decrease of 9.3%, a decline that was 0.8 percentage points larger than the previous month. The sales price of second-hand housing in second-tier cities fell by 1.0% month-on-month, and the decline expanded by 0.1 percentage point from the previous month. The sales price of second-hand housing in third-tier cities fell by 0.9% month-on-month, the same rate of decline as last month.

On May 17, the central bank, the State Financial Supervision and Administration and other departments announced the real estate "combination plan", stating that for households purchasing commercial housing with loans, the minimum down payment ratio for commercial personal housing loans for their first home will be adjusted to no less than 15%. , the minimum down payment ratio for commercial personal housing loans for second homes is adjusted to no less than 25%. At the same time, the central bank also proposed that starting from May 18, the interest rate on personal housing provident fund loans will be reduced by 0.25 percentage points. The interest rates on first-time personal housing provident fund loans under 5 years (including 5 years) and over 5 years will be adjusted to 2.35% and 2.85% respectively. The central bank plans to set up affordable housing re-loans with an interest rate of 1.75%, a term of one year and four extensions, and a scale of 300 billion yuan. The People's Bank of China will issue re-loans based on 60% of the loan principal, which can drive bank loans of 500 billion yuan.

After the policy was introduced, it immediately triggered a collective rise in domestic real estate stocks. 300917.SZ, 000560.SZ, 600266.SH, 600649.SH, 002244.SZ, 002146.SZ , 000002.SZ and other stocks hit their daily limit.

According to the latest data from the China Index Research Institute, the overall month-on-month decline in second-hand housing prices in the top ten domestic cities has narrowed. The introduction of domestic policies can be described as epic-level favorable policies for home buying, but it seems that the decline in housing prices has not stopped yet.