BEIJING (Reuters) – China’s new home prices rose sharply in October, traditionally the peak house-hunting season, a private survey showed on Friday, suggesting that the latest support measures may have had some impact on the start of the crisis. the market.
The average price in all 100 cities increased by 0.29%, compared with the previous month’s 0.14%, according to data released by property researcher China Index Academy.
On a year-on-year basis, prices rose by 2.08% compared to 1.85% growth in September.
The real estate market, which once accounted for nearly a quarter of economic activity, is facing a prolonged recession starting in 2021 and remains a drag on the world’s second-largest economy.
The authorities released a number of property easing measures at the end of September, including a reduction in the minimum down payment to 15% for all categories of housing and a relaxation of housing purchase restrictions.
The stimulus measures appear to have revived the industry in some major cities. The survey showed the metropolis Shanghai recorded a month-on-month house price increase of 1.09%.
However, smaller cities continue to decline, underscoring the cautious buyer sentiment that has cooled the real estate market in recent years.
Average new home prices fell 0.02% from the previous month in smaller cities last month, data from the China Index Academy showed.
New home sales fell 34.7% year-on-year in January-October, although they rose 10.53% in October, according to a separate study released by the academy the previous day.
“The increase in high-end cities may be the result of an urgent need to respond to those mitigation measures. Such a need is unlikely to continue, as evidenced by cases of temporary recovery in the past two years,” it said. economists at Nomura in a research note earlier this week.
“Ensuring the delivery of pre-sold housing is critical to reversing the decline in real estate, especially in low-income cities … direct financing from Beijing will be very effective,” Nomura said.
(Reporting by Liangping Gao and Ryan Woo; Editing by Shri Navaratnam)
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