China's property market maintained steady development last month, as housing prices remained stable in major cities.
On Tuesday, China’s National Bureau of Statistics (NBS) reported that new home prices in the country’s four first-tier cities (Beijing, Shanghai, Guangzhou and Shenzhen) rose 0.3 per cent month-on-month last month, reporting the same increase as the previous month.
New house prices in Beijing and Shanghai surged 0.5 per cent and 0.3 per cent month-on-month. Guangzhou and Shenzhen in Guangdong province both reported an increase of 0.2 per cent in new home prices.
New house prices in the four first-tier cities rose 4.2 per cent year-on-year last month, 0.1 percentage points lower than the prices in July.
Second-hand housing prices in the four first-tier cities increased by 0.3 per cent month-on-month last month, but decreased by 0.2 per cent year-on-year, marking the first decline since last June.
Last month, prices of new homes and second-hand residential buildings in 31 second-tier cities rose by 0.5 per cent and 0.2 per cent month-on-month, both reporting 0.2 percentage points lower than July.
On a yearly basis, new house prices and second-hand housing prices jumped 9.9 per cent and 5.5 per cent, 0.8 and 1.2 percentage points lower than the previous month.
Data from the NBS showed that new house prices soared 0.7 per cent on a month-on-month basis in 35 third-tier cities last month, similar to the increase in July. The prices jumped nine per cent year-on-year last month, 1.2 percentage points lower than in July.
The prices of second-hand residential buildings in 35 third-tier cities rose by 0.8 per cent month-on-month, 0.1 percentage point higher than in July. The prices surged 5.8 per cent year-on-year, 1.3 percentage points lower than in July.
This tapering off in price increases came after a series of government initiatives to stabilise the property market and pursue steady growth in the nation’s economic development.
The Political Bureau of the Communist Party of China Central Committee held a meeting on July 30, saying China will adhere to the principle of “housing is for living in, not for speculation”.
China will implement such a long-term mechanism to maintain the sound development of the real estate market, and not use real estate as a short-term means of stimulating the economy, according to the meeting.