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China’s September new home price gains led by smaller cities

Average new home prices in China’s 70 major cities rose 0.9 percent in September from a month earlier, Reuters calculated from official data published on Saturday, slower than the previous month’s reading of 1.4 percent, which was the fastest growth in two years.

Compared with a year ago, however, new home prices climbed 7.9 percent, the quickest year-on-year gain since August 2017 and faster than the previous month’s 7 percent rise.

Prices continued to rise despite tougher curbs designed to rein in a near-three-year real estate boom that has spilled over from megacities to the hinterland.

Average new home prices in China’s 70 major cities rose 0.9 percent in September from a month earlier, Reuters calculated from official data published on Saturday, slower than the previous month’s reading of 1.4 percent, which was the fastest growth in two years.

Compared with a year ago, however, new home prices climbed 7.9 percent, the quickest year-on-year gain since August 2017 and faster than the previous month’s 7 percent rise.

Prices continued to rise despite tougher curbs designed to rein in a near-three-year real estate boom that has spilled over from megacities to the hinterland.

There have already been some signs of caution in the market, as authorities stepped up controls in hundreds of cities. Transactions fell sharply over the period dubbed “Golden September and Silver October”, traditionally a high season for new home sales.

Prices in China’s largest cities where the strictest control measures are in place, were mostly stable in September, though Guangzhou prices rose 0.4 percent on-month and 4.3 percent year-on-year.

The top price performer in September was Xian, the capital of China’s northwestern Shaanxi province, whose prices rose a blistering 6.2 percent from the previous month, NBS data showed.

Official data this week showed growth in China’s real estate investment eased in September while home sales fell for the first time since April, as developers dialed back expansion plans amid economic uncertainties and as additional curbs on speculative investment kicked in.

Real estate investment, which mainly focuses on residential but also includes commercial and office space, rose 8.9 percent in September from a year earlier, compared with a 9.2 percent rise in August.

Property sales by floor area fell 3.6 percent in September from a year earlier, compared with a 2.4 percent gain in August, according to Reuters calculations, the first decline since April. In year-to-date terms, property sales rose 2.9 percent in the first three quarters.

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