China June new home prices flat in weakest showing this year

CHINA’S new home prices were unchanged in June, the weakest result this year, data showed on Saturday (Jul 15), increasing pressure on policymakers for more stimulus as economic recovery falters.

The flat result from a month earlier, with rises slowing nationwide, was below May’s 0.1 per cent gain, according to Reuters calculations based on National Bureau of Statistics (NBS) data. Prices were also unchanged from a year earlier, retreating from a 0.1 per cent increase in May.

The property sector, accounting for one-fourth of activity in the world’s second-biggest economy, slumped sharply last year as developers defaulted on debts and suspended construction of presold housing projects.

The central and local governments and regulators have announced a slew of policies over the past year to prop up the sector.

Measures have ranged from extended financial support for developers to multi-pronged incentives for home buyers. But the uncertain economic outlook and persistent weakness in the sector have dented confidence and home demand, dampening hopes for any quick revival.

Weakness in home prices and falling exports are adding to pressure on policymakers to take do more to prop up the real estate and revive sluggish demand.

The Chuan Park


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