New home prices increase in August
New home prices rose in August for the first time to a level higher than a year earlier, after a slew of policy measures announced by the Chinese government helped prop up sales.
Prices rose in 35 cities of the total 70 tracked, compared with 31 in July, the National Bureau of Statistics said. The rise in the number of cities that saw price increases helped push average prices 1.7 percent higher than a year earlier, compared with a 0.4 percent fall in July.
However, the improving sales have not translated into a revival of realty investments, which expanded just 3.5 percent in the first eight months, the slowest pace since 2000, according to the NBS.
Average prices rose 0.17 percent in August from July, gaining for a fourth consecutive month, according to The Wall Street Journal’s calculations based on official data.
The price pickup and months of robust sales were fueled by the five interest-rate cuts since November and the easing of various restrictions.