BEIJING – China’s new home prices fell at their fastest pace since May 2015 in September, official data showed on Oct 18, despite increased efforts to revive the struggling property sector.
In annual terms, new home prices were down 5.8 per cent from a year earlier, steeper than the 5.3 per cent slide in August, according to Reuters calculations based on National Bureau of Statistics (NBS) data.
New home prices were down for the 15th consecutive month, falling 0.7 per cent month on month in September and matching a dip in August.
The weakness in the sector sent China’s CSI 300 real estate index down nearly 3 per cent in early trading, bucking the lift in the broader index.
China’s prolonged property downturn, which once accounted for a quarter of its economic activity, remains a major drag on the economy.
In recent weeks, China has introduced supportive measures, including lower mortgage rates, and eased home purchase restrictions, which have spurred some demand in major cities.
On Oct 18, the housing authority announced plans to expand the “white list” of eligible housing projects and increase bank lending to four trillion yuan by year-end, in a bid to stabilise the ailing real estate sector.
Additionally, China is expected to raise six trillion yuan through special treasury bonds over the next three years to reinvigorate its struggling economy.
Data out on Oct 18 showed the economy grew 4.6 per cent in the third quarter, slowing from 4.7 per cent in the second quarter.
“The soft reading puts the annual growth target under pressure as the economy will have to post a sharp quarterly rebound of about 1.5 per cent in the final quarter,” said economist Junyu Tan from Coface Greater China Services.
Of the 70 cities surveyed by NBS, two
