New home prices in Chinese cities fell at faster pace in August than in July, according to official data released, as the gloomy outlook for the housing market persists despite government stimulus measures, analysts said.
Prices for new homes in 70 medium and large-sized cities fell 0.3 per cent month on month in August after a 0.2 per cent drop in July, data released by the National Bureau of Statistics showed.
Only 17 of the 70 Chinese cities tracked saw price increases last month, compared with 20 in July, while prices of lived-in homes rose in three cities, versus six in July.
“The overall momentum of growth is weak, and the overall confidence of the industry needs to be further repaired, “said Zhang Bo, chief analyst at 58 Anjuke Real Estate Research Institute in Shanghai.
Among major cities, Beijing, Shenzhen and Guangzhou recorded month-on-month price declines ranging from 0.2 per cent to 0.6 per cent for new homes in August, while Shanghai’s new home prices increased 0.1 per cent over the same period.
Growth also remains hard to come by in small and medium-sized cities amid the subdued economic outlook nationwide, Zhang said.
New home prices in tier-two cities dropped 0.2 per cent monthly in August, the same decline as in July, while prices in tier-three cities slipped 0.4 per cent, adding to a 0.3 per cent decrease in July, the official statistics showed.
Second-hand home prices in first-tier cities dropped 0.2 per cent month on month in August, with the declines in Shanghai, Guangzhou, and Shenzhen ranging from 0.2 per cent to 0.6 per cent. Beijing’s lived-in home prices increased 0.4 per cent.
The lacklustre August data comes amid efforts by the central government to prop up the property sector. Authorities rolled out a set of preferable home purchase measures earlier this month, including easing curbs on homebuyers in tier-one cities and cutting mortgage rates nationwide.
In the latest move, the Chinese central bank said it would cut the reserve requirement ratio by 25 basis points from for all banks, except those that have implemented a 5 per cent reserve ratio. The move is expected to inject about 500 billion yuan (US$68.7 billion) into the financial system.
