THE weak momentum in China’s real estate market continued for the fourth straight month in August though the average price of shanghai apartments fell by a slower pace, a report released yesterday by the China Index Academy showed.
The average price of new homes in 100 cities dipped 0.59 percent from July to 10,771 yuan (US$1,752) per square meter last month, the academy said. The price shed by 0.81 percent in July, 0.5 percent in June and 0.32 percent in May, which was the first month-on-month drop since June 2012.
“The country’s housing market is still undergoing a correction at the moment, with most cities registering smaller price drops compared with a month earlier,” the academy said.
“Meanwhile, the relaxation of home purchase restrictions in some second and third-tier cities will somewhat help boost short-term sales while September and October, traditionally high season for property purchase in China, might also lead to a seasonal rebound in transactions.”
Over 80 percent of the 46 cities have eased their home purchase curbs as local governments intervene to counteract sluggish sales.
Across the country, prices fell in 74 of the 100 cities tracked by the academy, down from 76 in July. Of these, 31 cities suffered drops above 1 percent, a decrease of eight from a month earlier.
In the 10 largest cities, the average price of a new home shed 0.53 percent to 19,226 yuan per square meter in August, compared with a 0.97 percent drop in July and a 0.45 percent retreat in June.
Hangzhou led with a 1.81 percent monthly decline, followed by Chongqing and Wuhan with a drop of 1.66 percent and 1.58 percent, respectively. New apartment in Shanghai prices fell 0.33 percent from July, the academy said.
