China’s new home prices rose at a slower pace in April compared with a month earlier, indicating policies to boost buyer sentiment are failing to gain traction.
New home prices in 100 cities reportedly rose just 0.02% from a month earlier, slowing from March’s 0.03% gain, according to survey data from China Index Academy, one of the country’s main independent property research firms.
More than 80 cities have taken steps to boost demand this year after the property market slowed sharply in 2021 as Beijing’s cracked down on high leverage in the sector, including subsidies, smaller down payments, reductions in mortgage rates and relaxation on rules for home purchases.
Some banks in the city of Zhangjiakou, 180 km (110 miles) northwest of capital Beijing, cut minimum down payments from April 18, according to state-backed Securities Daily.
In April, banks in over 23 cities loosened limits on provident housing funds for certain home buyers.
Data from the China Index Academy survey showed 44 of the 100 cities surveyed reported gains in new home prices in April, compared with 37 cities in March.
“Policy has turned more supportive of housing demand and home sales should rebound once the virus situation improves,” research company Capital Economics said in a note.
- Reuters, with editing by Neal McGrath
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