New-home prices in China fell in February from the previous month, reversing gains recorded in January, suggesting that demand for homes declined during the Lunar New Year holiday.
Prices of new homes fell 0.2 percent on average last month, compared to a 0.2 percent gain in January, according to the China Real Estate Index System, the Wall Street Journal reported.
On an annual basis, average new-home prices fell 3.8 percent in February, a larger decline compared with the 3.1 percent fall in January and a 2.7 percent drop in December, the data provider was quoted as saying over the weekend.
Of the 100 cities surveyed, 61 showed a sequential drop in home prices, compared with 56 cities that recorded declines in January, the report said.
Property developers are struggling with thinning margins and oversupply in smaller Chinese cities, but are hopeful that conditions will improve this year.
The central and local governments have been loosening property controls such as relaxing home-purchase limits, mortgage rules and funding constraints.
Meanwhile, the central bank also announced Saturday another cut in benchmark interest rates in aneffort to shore up demand.
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