Drop in new home prices across 70 major cities matches the previous month, which was the sharpest decline since October
The month-on-month drop in new home prices across 70 major cities matched the decline in the previous month, which was the sharpest since a 0.5 per cent fall in October, according to National Bureau of Statistics data released on Friday.
New home prices have been sliding since April 2022 on a year-on-year basis. Last month, they fell by 3.4 per cent from a year earlier, narrowing from a 3.7 per cent decline in June.
The number of cities reporting a decline in home prices rose in July to 60 from 56 a month earlier. While seasonal factors – July is traditionally a slower month – played a role, the trend also reflected a tangible drop in housing demand, said Yan Yuejin, vice-president of E-House China Real Estate Research Institute in Shanghai.
“Some developers have been saying since the second quarter that sentiment has been waning,” he said. “A moderate reduction in home prices will better align demand with supply, but severe price adjustments could rattle the market, which is something we should avoid.”
