24 October 2018
China's housing market slowdown is spreading to more cities. Photo: Bolomberg
China's housing market slowdown is spreading to more cities. Photo: Bolomberg

China property market shows further signs of slowdown

Thirty-five out of seventy major cities in mainland China recorded declines in new home prices in May, compared to eight in April, providing more evidence that the market has changed its direction after the earlier highs, Apple Daily reported Thursday.

According to data released Wednesday by the National Bureau of Statistics, the index of new home prices in 70 major mainland cities fell 0.16 percent in May from a month earlier, the first monthly drop in two years.

Some analysts have predicted that home prices could drop as much as 20 percent this year.

Third-tier cities as a whole saw the biggest price drop of 0.18 percent, although prices in first and second-tier cities also fell.

Compared to a year earlier, new home prices rose 5.6 percent in May, 1.2 percentage points less than in April.

New home prices in Hangzhou in Zhejiang province fell the most among all the surveyed cities, as they dropped 1.4 percent month-on-month in May compared to 0.7 percent decline in April. Wuxi in Jiangsu province posted the second-largest drop of 0.8 percent. Meanwhile, prices in Zhengzhou in Henan rose the most, at 0.3 percent.

Sluggish home sales have prompted developers to cut prices since late February. China Vanke (000002.CN), which is set to switch its listing to Hong Kong this month, is said be offering 20 percent discount to home buyers nationwide, including in Beijing.

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