China’s home prices fell at faster pace in September – CICC

Weighted average transaction price index for homogeneous second-hand homes in China’s 11 key cities declined 1.6% in September from the previous month, while the index for 51 major cities dropped by 1.7%, both falling at a faster pace for the second consecutive month and marking the steepest drops since the record started, according to the latest report from the China International Capital Corporation (CICC).

The two indexes fell by 1.1% and 1.2% respectively in August and by 0.4% and 0.6% in July.

So far this year, cumulative price gain in the 51 cities monitored by the CICC has narrowed to 0.7%, after peaking at 4.4% in June. By regions, home prices in all city clusters declined month over month in September, with Northeast China leading the decline. The Harbin-Changchun City Cluster in the region has seen home price drop by as much as 5.5%.

Notably, the city of Harbin, capital of Heilongjiang province, recently announced a package of measures to boost home sales and support property developers. The measures include providing subsidies to qualified talents in their first-home purchases, relax requirements for buyers to purchase second-hand homes with loans from the Provident Fund, making it easier for developers to apply for property pre-sales and encourage quicker return of pre-sale funding to developers, etc.

Among the 51 cities monitored, 36 cities saw home prices decline in September from the previous month, compared to 30 in August, and the number of cities where home prices rose month over month fell to 6 from 12 in August, according to CICC.

The index tracking prosperity in existing home market fell by 0.33% in September from a month earlier to 100.21.

Weighted average transaction price index for homogeneous second-hand homes in 11 key cities (orange bars) and 51major cities (grey bars). Chart from the China International Capital Corporation (CICC).