New home prices in China rose at their slowest pace in five months in June, a private survey showed Monday, with the impact of recent government support measures to prop up the country’s struggling property sector so far limited.
The average price of new homes in 100 cities rose 0.15 percent month-on-month in June, lower than the 0.25 percent increase in May, according to data from real estate research institute China Index Academy.
The sales value of new homes in China’s top 100 real estate companies fell 41.6 percent between January and June compared with the same period of the previous year, the Academy also said.
In May, Chinese authorities unveiled what they called a historic support package for the real estate sector which has been hit hard by a liquidity crunch since 2021, with many companies defaulting on payments.
The package cut down payment requirements and removed the floor on mortgage rates. Local governments can now ask state-owned enterprises to buy unsold apartments from developers that they have completed and turn them into social housing.
Data from the China Index Academy also showed that the average price of second-hand homes in 100 cities fell 0.73 percent in June from the previous month, marking the 26th consecutive month of decline.
