BEIJING – China’s new home prices fell at the fastest pace in nine years in July, official data showed on Thursday, as supportive policies failed to stabilize the market and restore confidence in the struggling sector.
New home prices fell 4.9% from a year earlier, deeper than a 4.5% slide in June, according to Reuters calculations based on National Bureau of Statistics (NBS) data. Prices last fell this sharply in June 2015.
New home prices were down for the 13th straight in monthly terms, falling 0.7%, and matching the pace of decline in June.
Beijing has been intensifying efforts to support the sector, which at its peak accounted for a quarter of the economy, including reducing mortgage rates and lowering home buying costs.
The housing market downturn has hindered growth, with analysts saying Beijing’s 5% 2024 GDP target may be too ambitious even as other economic gauges including industrial production have steadied.
In separate data on Thursday, property sales by floor area in January-July fell 18.6% from a year earlier, compared with a 19.0% slump in January-June. – Reuters
