January new-home sales in China's top 100 property developers slumped by 34.2% y/y or 47.9% m/m, the worst month since at least July 2020, CRIC data showed.

Both supply and demand for new homes experienced a significant drop of over 40% compared to the previous month. When compared to the same period in previous years since 2019, the market remained at a low level.

In the 30 key cities, the supply decreased by 47% m/m but still increased by 16% y/y. Transaction volumes also fell both m/m and y/y, indicating a continued bottoming-out trend in the overall market.

First-tier cities performed slightly better than second and third-tier cities, with a relatively smaller decline compared to the average of the 30 cities.