China Jan home prices fall

HONG KONG: Average new home prices in China’s 70 major cities fell for the ninth straight month but showed some signs of stabilising in the top cities, signaling an improvement in market sentiment after the central bank cut interest rates and lender’s reserve requirements.
Average new home prices in China’s 70 major cities were down 0.4 percent in January from December, an ninth straight monthly drop following December’s fall of 0.3 percent, Reuters calculated from official data published on Tuesday.
New home prices in Beijing fell 0.1 percent between December and January, slowing from a 0.2 percent fall in December from November, while Shanghai prices were flat, stabilising after eight straight month-on-month falls.
Against year-ago levels, the National Bureau of Statistics data showed new home prices fell for the fifth consecutive month, down 5.1 percent, accelerating from the annual 4.3 percent fall in December.
Of the 70 major cities the NBS monitors, 64 posted a monthly decline, down from December’s 66.
Liu Jianwei, senior statistician at the National Bureau of Statistics (NBS), said in a statement prices became more polarised among different cities, with first-tier centres stabilising while second-tier narrowed their declines and third-tier saw faster falls.
Stabilising prices in Beijing and Shanghai suggest China’s real estate market is showing signs of recovery, as some developers raise prices in major cities following government efforts to revitalise an economy growing at its slowest rate in more than two decades.
Some major Chinese developers also said they are planning to raise prices for new luxury projects in prime areas this year.