Housing prices in September showed a downward trend, according to new calculations based on data released by China’s National Bureau of Statistics. The prices of new homes in 70 surveyed cities dropped by 0.41% compared to the previous month, following a 0.3% decrease in August.
Out of the cities surveyed, 63 reported declines in new home prices, exceeding the 57 that experienced falls in August. Only five cities, including major centers like Beijing and Shanghai, saw price increases, down from nine cities in the previous month.
Based on official statistics, a 0.64% reduction in the prices of second-hand homes was also observed in September, which accelerated from a 0.58% decline recorded in August.
Unlike previous months, where some cities still showed slight increases, all 70 cities covered by the analysis saw a decrease in the prices of used housing.
In recent years, Chinese authorities have introduced successive measures to curb the collapse of the real estate sector, a significant concern for Beijing due to social implications, as housing represents a primary investment asset for Chinese families.
The crisis within the sector is identified as one of the main contributors to China’s economic slowdown, with real estate’s share of the Gross Domestic Product (GDP), including indirect effects, estimated at about 30%, according to analysts.
