China’s new home price expands at weakest rate in 18 months

China’s new home prices grew at the weakest rate since March 2020 in September.  The decline was due to a weak property market as a crackdown on speculation, including house purchase limits, persists.

New home prices in 100 cities surged 0.14% in September, according to independent real estate research firm China Index Academy. It followed a 0.2% expansion in August.

Prices in the biggest tier-one cities such as Shanghai and Beijing increased 0.16% from August’s 0.11% gain.

Monthly new home prices in tier-two cities, including provincial capitals, grew 0.17% after a 0.31% increase in August. It jumped 0.1% in tier-three and tier-four cities from a 0.12% gain in August.

On an annual basis, overall new home prices soared 3.4% in September, lower than August’s 3.51% expansion.

In September, some cities implemented more targeted measures to push speculators out of the real estate market, including limits on speculation on school district assets.

Meanwhile, regulators in the northeastern city of Shenyang and the southern city of Haikou advised real estate developers and agencies to avoid overvaluing properties in school areas.