Tepid Housing Market
China’s property market continued to cool as home prices faltered or posted slower growth in major cities amid tough control policies, official data showed on October 23.
On a yearly basis, new residential housing prices saw slower growth in 15 major cities in September, compared with the same month last year, the National Bureau of Statistics said. On a monthly basis, new residential housing prices fell or remained flat in those cities.
Both new and second-hand residential housing prices in firsttier cities tumbled 0.2 percent, compared with a month earlier, while new home prices in secondtier cities climbed 0.2 percent month on month, on par with the growth in August.
In smaller third-tier cities, new and second-hand home prices went up 0.2 and 0.3 percent respectively, lower than the growth last month. It marked the 12th consecutive month that both new and second-hand home prices in first-tier cities showed slowed growth from a year earlier.
The data provide fresh evidence that China’s property market boom is running out of steam as the government continues cooling measures to squeeze out asset bubbles.
Since late last year, dozens of local governments have passed or expanded restrictions on house purchases and increased the minimum down payment required for a mortgage.
The market was also cooled by relatively tightened liquidity conditions as the government moved to contain leverage and risk in the financial system.