China new home prices fall 0.5% m/m in October

BEIJING (Reuters) – China’s new home prices fell for the 16th consecutive month but at a slower pace in October, official data showed on Friday, suggesting overall sentiment remains weak despite a barrage of support measures to stabilise the crisis-hit property sector.

New home prices were down 0.5% month-on-month after a 0.7% dip in September, the slowest pace in seven months, according to Reuters calculations based on National Bureau of Statistics (NBS) data.

In annual terms, new home prices were down at the fastest pace since 2015, falling 5.9% after a 5.8% slide in September.

China has since last year ramped up efforts to stabilise the property sector which plunged into crisis in 2021, including injecting more funds to support cash-strapped developers and lowering the borrowing cost.

On Wednesday, the finance ministry introduced new tax incentives to further lower the cost of home purchase and spur demand, in its latest efforts to revive the sector.