BEIJING (Reuters) – New home prices in China rose at their slowest pace in five months in June, a private survey showed on Monday, and a recent package of government support measures for the country’s ailing real estate sector has had so far only a limited impact.
The average price of new homes in 100 cities rose 0.15% month-on-month in June, weaker than the 0.25% increase in May, according to data from property research firm China Index Academy.
The value of new home sales in China’s top 100 real estate companies fell 41.6% between January and June compared to the same period a year earlier, it also said.
In May, Chinese authorities unveiled what they called a historic support package for the property sector, which has been hit hard by a liquidity crisis since 2021 and many companies have defaulted on their debt payments.
The package further reduced down payment requirements and removed the floor for mortgage rates. Local governments can also now order state-owned enterprises to buy finished, unsold apartments from property developers and convert them into social housing.
Data from China Index Academy also showed that the average price of second-hand homes in 100 cities fell 0.73% in June from the previous month, the 26th consecutive month of declines.