China’s new home price gains led by smaller cities

0.9% rise in average new home prices in China’s 70 major cities

beijing — China’s new home prices increased at a firm pace in September, supported by gains in smaller cities and showing the market remained resilient despite pressures from softer investment, a slowing economy and government curbs on the sector.

Average new home prices in China’s 70 major cities rose 0.9 per cent in September from a month earlier, Reuters calculated from official data published on Saturday, slower than the previous month’s reading of 1.4 per cent, which was the fastest growth in two years. Compared with a year ago, however, new home prices climbed 7.9 per cent, the quickest year-on-year gain since August 2017 and faster than the previous month’s 7 per cent rise.

Prices continued to rise despite tougher curbs designed to rein in a near-three-year real estate boom that has spilled over from megacities to the hinterland.

In a sign of continued broadbased market strength, 64 out of the 70 cities surveyed by the National Bureau of Statistics (NBS) reported a monthly price increase for new homes, though the number was down from 67 in August.

The top price performer in September was Xian, the capital of China’s northwestern Shaanxi province, whose prices rose a blistering 6.2 per cent from the previous month, NBS data showed.