BEIJING (Reuters) – Average new home prices in 100 Chinese cities fell for a third consecutive month in July, while more measures are expected in major cities to lift the country’s embattled property sector, a private survey showed on Tuesday.
New home prices on an average fell 0.01% month-on-month in July, unchanged from June and May, according to a survey by China Index Academy, a real estate research firm. Only 35 cities, of the 100, saw a gain in new home prices.
New home sales by value among top 100 real estate firms across the country fell 34.1% year-on-year in July, according to a separate statement from the research firm on Monday.
China’s property sector has seen a string of debt defaults by cash-squeezed developers over the past few years and is showing few signs of recovery. Top leaders at a Politburo meeting recently pledged to adjust and optimise policies in a timely manner to help prop up the sector.
Future policy optimization measures are expected mainly in the core tier-two and tier-one cities, as restrictive policies of the property market in most tier-two and tier-three and four cities have been relaxed, the China Index Academy said.
Measures may involve easing mortgage curbs, “reducing the down payment ratio, mortgage interest rate, transaction taxes and fees, and relaxing housing purchase curbs in some areas”, it added.
Tier-one cities including Beijing and Shenzhen have already vowed to implement measures, without giving details.
(Reporting by Liangping Gao and Ryan Woo; Editing by Himani Sarkar)
