BEIJING, June 1 — The average price of new homes across 100 cities in China climbed 0.30 per cent in May, suggesting supportive policies could be yielding some effect, according to a private survey released by property researcher China Index Academy today.
The increase was almost double the last month’s rate of increase at 0.14 per cent.
New home prices have been under pressure even as Chinese policymakers plough in efforts since last year to stabilise the sector with supportive measures, including most recently lowering lending rates to spur real estate purchases.
“Overall, the current macro policy support for the property market has been increasing,” the real estate research institute said in a report posted on its WeChat account.
New home prices in first- and second-tier cities were surveyed rising from a month ago, with Shanghai topping the list of 100 cities.
On a year-on-year basis, the average prices for new homes rose faster at 2.56 per cent, versus 2.50 per cent in April.
China’s statistics bureau will release the official data for home prices on June 16.
The market continued to see a persistently high volume of listings for second-hand residential units, keeping prices lower in that segment, it said.
Prices of second-hand properties fell 0.71 per cent from a month ago, and 7.24 per cent year-on-year. That compared with April’s declines of 0.69 per cent and 7.23 per cent, respectively.
The property market, accounting for roughly a quarter of economic activity at its peak, is where some 70 per cent of China’s household wealth is invested.
Any signs of relief could help cushion China’s economy from the stresses of a yet-unresolved trade war with the United States. — Reuters