China home prices dip in March despite easing of policies, private surveys show
Mainland home prices dipped in March, but at a slower pace, as policy relaxation fuelled a recovery in top-tier cities, two private surveys showed on Wednesday.
Mainland home prices dipped in March, but at a slower pace, as policy relaxation fuelled a recovery in top-tier cities, two private surveys showed on Wednesday.
An index measuring the average new home price in 288 mainland cities fell 0.01 per cent last month from February, the slowest pace in five months. But it also marked a full year of consecutive housing price drops, according to the compiler, property consultancy China Real Estate Information Corp (CRIC). Prices edged up in 141 cities in March, compared with 127 in February.
Another survey by consultancy China Index Academy showed the average new home price in 100 mainland cities fell 0.15 per cent last month to 10,523 yuan (HK$13,176) per square metre. But prices rose in 43 cities in March, up from 39 in February.
It remains to be seen how soon property developers can clear their inventory levels
“Looking into the future, China has basically rolled out measures to spur property-related consumption,” said China Index Academy, run by the mainland’s largest real estate services provider, Soufun Holdings. “They will strongly help sell down market stocks and promote steady and healthy development in the property market if implemented solidly by all cities.”
On Monday, the mainland cut down payments for buyers of second homes to 40 per cent from 60 per cent to 70 per cent before and waived the transaction tax for sellers after two years of ownership, as opposed to five years previously.
Policy easing started in the middle of last year when cities, one after another, relaxed home purchase restrictions. Market sentiment warmed up in the last quarter of the year as the central bank ended its five-year tightening stance against the once-sizzling real estate market and cut interest rates in November, for the first time in two years.
However, the momentum was lost again in the New Year, prompting the government to take its strongest action since the global financial crisis to support the housing market and prop up economic growth.
