New home prices in China in May slipped 0.1% month-on-month, official data showed on Thursday.
The figure was recorded from average new-home prices in 70 major cities.
May’s decline followed a 0.2% fall in April, according to Reuters calculations based on National Bureau of Statistics data.
Among the 70 large and medium-sized cities, 46 saw a year-on-year decrease in prices for new homes, up from 39 in April, said Sheng Guoqing, chief statistician for cities at the bureau.
China’s property sector, a pillar of growth, faltered last year and deteriorated further in recent months and authorities are moving to spur home demand that was hit by Covid-19 curbs in some of the country’s biggest cities.
China’s home loans are poised to pick up after targeted easing measures, according to S&P Global.
The country’s latest measures to help homebuyers are designed to spur mortgage demand while ring-fencing banks from the default risk of builders.
“Growth in home loans, which account for about one-fifth of total bank loans in China, is set to rebound after a slowdown in recent months,” S&P said.
“The government has eased mortgage costs through cuts of interest rates, relaxed some rules on ownership of multiple properties and urged banks to lend more to homebuyers.”
- Reuters, with additional editing by George Russell