China’s new home price growth slowest in five months, private survey finds

A woman walks past a residential complex in the Tongzhou district of Beijing, China, February 25, 2016. REUTERS / Jason Lee

BEIJING, Sept.1 (Reuters) – New home prices in China in August rose at the slowest pace in five months as searing demand in its biggest cities cooled following a series of restrictions aimed at stabilizing the surge in prices, a private sector survey revealed on Wednesday.

New home prices in 100 cities rose 0.2% in August from the previous month, slowing from a 0.35% increase in July, according to data from the China Index Academy, one of the largest independent real estate search companies in the country.

Authorities have stepped up efforts to curb house prices this year with measures such as restrictions on home purchases and higher mortgage rates.

The southern city of Guangzhou on Tuesday introduced a price benchmark for resale homes to curb its searing market. About ten cities, including Shanghai and Shenzhen, have already implemented similar pricing systems.

“In the third and fourth quarters, the property control measures will continue to be refined and become more comprehensive and frequent, to fill any (policy) loopholes,” said Cao Jingjing, research director at the China Index Academy.

Prices in the largest level one cities such as Shanghai and Beijing increased the most slowly, compared to price growth in level two cities and even smaller cities, up 0.11% from to growth of 0.54% in July.

The slowdown in Tier 1 cities is mainly due to control policies in these markets and COVID-19 related measures in Shanghai due to a recent outbreak in the financial center, Cao said.

On an annual basis, new home prices in China rose 3.51% in August, slowing from July’s 3.81% increase, the lowest since December 2020.

Land sales to developers by floor space fell 32% in August from the previous month and fell 42% on an annual basis, according to separate data from the group.

The National Bureau of Statistics will release official August data for house prices in China in mid-September.

Reporting by Liangping Gao and Ryan Woo; Editing by Edmund Blair

Our Standards: The Thomson Reuters Trust Principles.

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