China: Decline in house prices eases slightly in September
October 24, 2014
House prices in 70 large and medium cities fell 1.0% in September over the previous month, according to a weighted average index calculated by Thomson Reuters from data issued by the National Bureau of Statistics (NBS). September’s drop was up from the 1.1% decline recorded in the previous month, which had represented the largest contraction in prices since records began in January 2011. According to the NBS, the sales prices of newly constructed residential buildings declined in 69 cities and that of 1 city remained at the same level.
On an annual basis, house prices declined 1.3%, which contrasted the 0.5% rise tallied in August and marked a 2-year low. As a result of the continued downward trend in house prices, annual average variation in house prices slowed from August’s 7.0% to 6.1% in September.
In recent weeks, Chinese authorities introduced measures to prop up the property sector. The central bank, in late September, eased credit conditions for the housing market, which includes lower mortgage rates for first-time buyers and a sizeable reduction in the down payment required for second-home buyers.