SHANGHAI: China’s residential prices have fallen in August, with used-home values dropping at a faster pace, the latest sign of a slump that have pushed policymakers to unveil fresh steps to support the market.
New-home prices in 70 cities declined 0.17% from July, when they slid 0.18%, figures from the National Bureau of Statistics showed yesterday.
Resale home values, which are subject to less government intervention, slid 0.31%, accelerating from previous month’s 0.29%.
China’s five-year property downturn has curtailed domestic demand that officials are counting on to boost the economy. That pushed Beijing to unveil sweeping policy changes on Aug 28, including bringing an end to a once dominant pre-sale model.
The changes came too late to affect the monthly figure – and analysts think it could still take a little while longer before they have a real impact on demand.
“Given the package is a structural reform rather than a cyclical stimulus, it will lend limited direct support to near-term property sales,” Moody’s Ratings analysts led by Lillian Li said in a report this month.
“Over time, these changes could help restore confidence in the housing market.”
The recent measures include a plan to push developers to offer completed properties instead of using the pre-sales model that exacerbated the housing crisis.
China will also support fundraising by developers through equity and bond sales. — Bloomberg
