BEIJING (Businesshala) – China’s October new home prices suffered the biggest month-on-month drop since February 2015, amid weakness in demand across the country as officials tightened up on buying restrictions to deter speculators. worked hard.
New home prices fell 0.2% in the past month, according to a Businesshala calculation of data released Monday by the National Bureau of Statistics (NBS). This was also the first decline since March 2015.
The October contraction compares with zero price increases from a month ago. Some analysts had said that based on their calculations, there has been a marginal fall in the prices in September.
China’s property market, which accounts for a quarter of GDP by some metrics, has slowed significantly since May, with sentiment increasingly shaken by signs of tensions in the sector, including a wider liquidity crisis. Which has surrounded some of the biggest and most in the country. Indebted Developers.
Last month, the Chinese parliament’s top decision-making body said it would introduce a pilot real estate tax in some areas, aimed at deterring speculators and pacifying the hike in house prices.
Bankers and analysts expect China to stick to policies to curb speculative buying and over-borrowing by developers, even as it tweaks financing to help home buyers.
Officials said in September that banks should offer financial assistance to genuine home buyers with so-called “hard” demand, those looking to buy or rent low-cost housing from recently married people.
The China Banking and Insurance Regulatory Commission (CBIRC) said lenders should avoid inflexible regulations that penalize non-speculative, legitimate home buyers.
Some Chinese banks have ramped up disbursement of home loans in some cities in recent weeks, which has helped support sentiment among buyers and brought relief to cash-strapped developers worried about completing sales.
While 13 out of 70 cities saw an increase in monthly prices, less than 27 cities recorded a price hike in September, the lowest since March 2015.
Overall new home prices rose 3.4% in October, the slowest pace since January, according to Businesshala’ calculation of data from the Bureau of Statistics.