China home prices fall 5.7% year on year in May

[SHANGHAI] Average new home prices in China's 70 major cities fell for the ninth consecutive month in May from a year earlier, down 5.7 per cent.

The figure compares to a fall of 6.1 per cent in April. Among the 70 cities, Shenzhen was the top performer, recording the second consecutive month of rebound, up 7.5 per cent following a 0.7 per cent rise, the National Bureau of Statistics said on Thursday.

New home prices in Shenzhen rose 6.6 per cent in May from April.

Beijing and Shanghai's new home prices both fell 2.3 per cent last month from a year earlier, versus the previous month's drop of 3.2 per cent and 4.7 per cent respectively.

They were up 1.1 per cent and 2.2 per cent respectively from the previous month.

China's real estate investment growth continued to slow in the first five months of 2015 to the lowest since May 2009, with inventory levels remaining high in lower-tier cities, despite signs of overheating recurring in Shenzhen.

The weak property market is seen as one of the major risks for the economy, which looks set to show its lowest growth in 25 years this year.

REUTERS