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Ease in housing prices spreads across nation

By Yao Jing and Hu Yuanyuan (China Daily) Updated: 2014-07-19 07:01

Ease in housing prices spreads across nation

Residential projects under construction in Rizhao, Shandong province. Industry experts expect a steeper fall in property prices in the second half of the year. Provided to China Daily

NBS reports declines in 55 major cities for June, up from 35 in May

Among 70 major cities in China, 55 recorded month-on-month price declines for new homes last month, up from 35 in May, the National Bureau of Statistics said in a statement on Friday.

Among the cities gaining, Hohhot, capital of the Inner Mongolia autonomous region, saw the biggest month-on-month rise, which was 0.2 percent. The city ended all restrictions on home purchases at the end of June.

The worst month-on-month performance was in the eastern city of Hangzhou, where prices fell 1.8 percent in June.

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Compared with a year earlier, prices rose in 69 cities - the same as in May.

The biggest increase was in Xiamen, Fujian province, where prices rose 9.4 percent year-on-year.

Wenzhou, in East China's Zhejiang province, saw the biggest price drop of 5.3 percent.

Among big cities, housing prices in Beijing rose 6.4 percent in June from a year earlier, but up just 0.1 percent from May.

In Shanghai, prices were up 7 percent year-on-year in June, compared with a gain of 9.6 in May, NBS data showed.

Industry experts expect a steeper fall in property prices in the second half of the year.

"July and August are usually the low season for property sales with fewer new launches. We do not expect this summer to be any exception, although we anticipate a narrowing year-on-year decline," said Gao Jianfeng, head of China property research at Nomura Securities Co Ltd.

Sales volume will move up gradually, albeit with more price cuts, in the third quarter. A solid pickup should be observed in September and October, according to Gao.

Guo Yi, marketing director of Yahao Real Estate Service Corp, said the market will remain weak in the third quarter, and the odds of a rebound largely depend on policy easing.

The availability of subsidized housing is a major factor depressing home prices and temporarily locking up demand, according to Guo.

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