Beijing, China (4E) – Prices of new homes in China dropped in a record number of urban areas monitored by the government as developers reduce prices to increase sales volume, a sign that curbs will be eased in more cities.
Data showed that the average price in 70 cities fell 0.47 percent in June, from a 0.15 percent decline in May, according to the report by the National Bureau of Statistics released Friday. The average price climbed 4.05 percent in June on an annual basis, from May’s 5.35 percent gain.
Prices dropped 0.6 percent each in Shanghai and Guangzhou from May, the largest fall since January 2011, while prices in Shenzhen slid 0.4 percent. The eastern city of Hangzhou saw prices drop 1.7 percent, which marks the biggest monthly decline among all the cities.
The property market — which includes steel, cement, furniture and other related industries — is a major growth driver for the world’s second-largest economy. Analysts estimate that it accounts for over 20 percent of China’s economy.
Excluding public housing, prices dropped 0.48 percent in June from the prior month, compared with a decline of 0.16 percent in May. Private-sector home prices tumbled in 55 of the 70 cities in June, more than the 35 cities that recorded declines in May.