A special survey showed on Saturday that new home prices in China fell for a third straight month in September, as a nationwide mortgage boycott and a slowing economy dampened potential homebuyers.
China’s property market crisis worsened this summer, as official data showed home prices, sales and investment all fell in August, adding to pressure on the world’s second-largest economy, which barely grew in the second quarter, Reuters reported.
Prices in the 100 cities fell 0.02% in September from the previous month, after falling 0.01% in July and August, respectively, according to a survey by the China Index Academy (CIA), one of the largest independent real estate research firms in the country.
The survey showed that out of the 100 cities, 56 recorded a decrease in monthly prices, compared to 69 cities in August.
The National Bureau of Statistics will release official prices for new homes for September on October 19.
The cold has deepened in the sector after a number of prominent developers defaulted on bonds and failed to complete projects or even start new ones, prompting many homebuyers to stop paying their mortgages and keeping the demand for new homes capped.
Sporadic shutdowns due to COVID-19 have also dented consumer confidence, while job losses and weak economic growth have made many more cautious about their spending.
To support the struggling sector, many small cities have taken steps this year such as lowering down payments, lowering mortgage interest rates, and offering better terms for families with more than one child.
The central bank said Thursday that local governments will now be able to ease minimum mortgage rates for first-time home buyers in some cities in phases.
Cao Jingjing, a CIA analyst, said that in the fourth quarter, local governments are expected to implement more measures to support their markets while still protecting against speculative buying.
MI