China’s home-price slump deepens in July to new 9-year low

CHINA’S new home prices fell at the fastest pace in nine years in July, official data showed on Thursday (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 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 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 per cent 2024 gross domestic product 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 to July fell 18.6 per cent from a year earlier, compared with a 19 per cent slump in January to June. REUTERS