New home prices fell 0.5 per cent month on month on average across 70 sampled cities, according to National Bureau of Statistics data released on Friday. It was the steepest drop since the 0.7 per cent fall in September last year. Year on year, prices slipped 2.6 per cent in October, compared with a 2.7 per cent drop in September.
Only six out of the 70 cities posted gains in October over September.
New home prices in second-tier cities fell 0.4 per cent in October, while those in third-tier cities eased 0.5 per cent.
The country’s real estate sector has been on a downward spiral since late 2020 when Beijing implemented the “three red lines” campaign that tightened financing for developers in an effort to cool a red-hot market. In that year, the top 100 developers sold a total of 11.5 trillion yuan (US$1.62 trillion) worth of homes, according to China Index Academy. By 2024, that figure had fallen by more than 60 per cent to 4.4 trillion yuan.