Major Chinese cities see property price declines

By Ding Yining | December 18, 2014, Thursday |

Online Edition

China's property sector continued its weakness in November but price declines have narrowed after government eased buying restrictions and cut interest rates to boost demand, official data showed today.

New home prices dropped in a total of 67 cities out of the 70 major cities tracked by the government, the National Bureau of Statistics said in a statement today. In Shanghai, new home price dropped 0.3 percent month-on-month, narrowing from the 0.7 percent drop in a month earlier.

"The shift of mortgage policies by local governments as well as the central bank's cut on interest rate have brought positive effect on new home sales across the country," said Liu Jianwei, the bureau’s senior statistician. Prices in the cities of Hefei, Nanjing and Shenzhen remained flat.

A total of 58 cities out of the 70 major cities saw prices of existing homes drop last month, compared with 64 in October.

Pre-owned home prices in four first-tier cities all posted monthly increases in November.

On the year-on-year basis, new home prices in 68 of the 70 cities declined, one more than in October.

"Housing price decline will continue going into next year, but the pace of adjustment will moderate and we expect the government will continue to ease housing policies with likely options including lower mortgage rates, tax incentives and easing down-payment requirement for second mortgage," said Zhu Haibin, China chief economist at JP Morgan China.

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Major Chinese cities see property price declines

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