Oct 18, 2024 09:26 AM IST
Chinaโs September home prices fell at almost the same pace as the previous month, despite the countryโs efforts to stabilize the real estate sector.
(Bloomberg) — Chinaโs September home prices fell at almost the same pace as the previous month, despite the countryโs efforts to stabilize the real estate sector.
New-home prices in 70 cities, excluding state-subsidized housing, dropped 0.71% from August, in line with a 0.73% decline a month earlier, National Bureau of Statistics figures showed October 18. Values of used homes fell 0.93%, following a 0.95% decline a month earlier.
Also Read: China home sales slump drags on despite government rescue
The slump underscores Beijingโs struggle to contain the property downturn at a time when deflationary pressure is adding to the economic gloom. China on October 17 pledged to nearly double the loan quota for unfinished residential projects to 4 trillion yuan ($562 billion) and planned to renovate 1 million homes in older, rundown dwellings in large cities. The plans still underwhelmed, with some analysts calling them โincremental.โ
Also Read: Can Indian real estate market face a crisis like China’s Evergrande?
That follows a pledge from top leaders in late September to stem the decline of the real estate market, in what Morgan Stanley called its most determined vow since the industry downtrend started more than three years ago.
The property sector will continue to be a drag on the economy โdue to the negative impact on household wealth, of which up to 70% are in properties,โ Woei Chen Ho, an economist at the United Overseas Bank Ltd., said before the data release.
Also Read: China mulls government purchases of unsold homes to ease glut
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