China’s property sector recovery loses steam after home prices face strong headwinds, investments decline
- New-home prices in Beijing, Shanghai and other tier-one cities rose 0.1 per cent month on month in May, slowing from April’s 0.4 per cent gain
- Lived-in home prices in tier-one cities declined 0.4 per cent in May, reversing from a 0.2 per cent gain posted a month earlier
New-home prices in Beijing, Shanghai and other tier-one cities rose 0.1 per cent month on month in May, slowing from a 0.4 per cent month-on-month gain in April, according to data released by the National Bureau of Statistics (NBS) on Thursday.
Prices for new homes in tier-two cities rose 0.2 per cent, also slower than April’s 0.4 per cent increase. Tier-three cities’ property prices were flat in May after growing 0.2 per cent in the previous month.
As for lived-in home prices, tier-one cities saw a 0.4 per cent decline in May, reversing from a 0.2 per cent gain posted a month earlier. Tier-two and tier-three cities registered 0.3 per cent and 0.2 per cent declines, respectively.
Among 70 medium and large cities in mainland China tracked by the NBS, only 46 cities recorded an increase in new home prices, down from 62 in April. The lived-in home market performed worse, with only 15 cities seeing rising prices, down from 36 in the previous month.
