China’s new home prices rise at slower pace in August

China’s new home prices continued to rise in August, but at a slower pace, according to a private survey released on Sunday.

This indicates that the struggling property sector is still searching for a bottom despite a series of supportive government policies.

The average price for new homes across 100 cities rose by 0.11 per cent in August compared to July, down from the previous month’s 0.13 per cent increase, as per data published by China Index Academy.

China’s property sector, a crucial pillar of its economy, has faced significant challenges since 2021 when a regulatory crackdown on high leverage among developers triggered a liquidity crisis.

Despite various stimulus and easing measures implemented by local policymakers, the sector has struggled to revive sales and improve liquidity. The number of cities reporting higher home prices decreased from 38 in July to 35 in August.

Attribution: Reuters

Subediting: M. S. Salama