Prices of new homes in 100 cities jumped 0.2% in August from a month earlier, slowing from a 0.35% growth in July, according to data from China Index Academy
China’s new home prices in August increased at the slowest pace in five months as strong demand in its biggest cities cooled after a slew of restrictions aimed at stabilising surging prices, a private-sector survey showed on Wednesday.
Prices of new homes in 100 cities jumped 0.2% in August from a month earlier, slowing from a 0.35% growth in July, according to data from China Index Academy, one of the country’s largest independent real estate research firms.
Authorities have stepped up efforts to rein in housing prices this year with measures such as restrictions on home purchases and higher mortgage rates.
The southern city of Guangzhou on Tuesday introduced a pricing reference for resale homes to curb its surging market. Nearly 10 cities including Shanghai and Shenzhen have already implemented similar pricing systems.
In the third and fourth quarter, property control measures will continue to be refined, and become more comprehensive and frequent, to plug any policy loopholes, said Cao Jingjing, research director at China Index Academy.
Prices in the biggest tier-one cities such as Shanghai and Beijing rose the slowest, compared with price rises in tier-two cities and even smaller cities, which rose 0.11% compared with 0.54% growth in July.
The slowdown in tier-1 cities was mainly due to control policies in those markets and COVID-19 related measures in Shanghai due to a recent outbreak in the financial hub, said Cao.
On an annual basis, China’s new home prices grew 3.51% in August, down from July’s 3.81% increase, the slowest clip since December 2020.
According to separate data from the group, land sales to developers by floor space dropped 32% in August from a month earlier, and dropped 42% on an annual basis.