China's new home price growth slows in September: Private survey

A labourer working at a construction site of an amusement park next to new property buildings in Hefei, Anhui province.
A labourer working at a construction site of an amusement park next to new property buildings in Hefei, Anhui province.PHOTO: REUTERS

BEIJING (REUTERS) - The rate of recovery in Chinese new home prices slowed in September from August, a private survey found, although sales volumes were much better than expected over the summer thanks to a series of government stimulus measures.

Average prices of new homes in 100 of the biggest cities climbed 0.28 per cent in September on-month, a poll by property data provider China Real Estate Index System (CREIS) showed, narrowing from a 0.95 per cent growth in August.

But home prices were 1.36 per cent higher compared to a year ago, accelerating from 0.15 per cent in the previous month.

"Transactions have seen stable growth in September prompted by the continuous housing stimulus measures," CREIS said in a statement on Wednesday (Sept 30).

It expected prices in the 100 major cities would continue to rise in October, due to more new property promotions especially during the week-long National Day holidays.

The government has been stepping up its efforts since late last year to revive the sluggish property sector which accounts for 15 per cent of the economy.

On Wednesday, it said it would cut the minimum downpayment for first-time home buyers in many cities.