China’s slump in home prices deepens in July to new 9-year low
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New home prices in China fell 4.9 per cent in July from a year earlier, deeper than a 4.5 per cent slide in June.
PHOTO: BLOOMBERG
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BEIJING – China’s new home prices fell at the fastest pace in nine years in July, official data showed on Aug 15, as supportive policies failed to stabilise the market and restore confidence in the struggling sector.
New home prices fell 4.9 per cent from a year earlier, deeper than a 4.5 per cent 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 per cent, and matching the pace of their decline in June.
Beijing has been intensifying efforts to support the sector
The housing market downturn has hindered growth, with analysts saying Beijing’s 5 per cent economic growth target for 2024 may be too ambitious even as other gauges including industrial production have steadied.
Separate NBS data on Aug 15 showed that property investment in China fell 10.2 per cent in the first seven months from a year earlier, after dropping 10.1 per cent in the period from January to June.
Property sales by floor area in January-July fell 18.6 per cent from a year earlier, compared with a 19 per cent slump in January-June.
New construction starts measured by floor area fell 23.2 per cent year on year after a 23.7 per cent drop in the first half of 2024.
Funds raised by China’s property developers were down 21.3 per cent from a year earlier after a 22.6 per cent fall in January-June. REUTERS
