Further falling prices of new homes
In neighbouring China, the prices of new homes are continuously dropping. Compared to 2015, the prices saw further reductions in October this year. On an annual basis, new home prices in October this year dropped by 5.9%. In September, the decrease was 5.8%, and now the prices have weakened even more. Notably, this marks the 16th consecutive month of falling home prices. However, China notes that the rate of monthly decline has slightly slowed, and the government’s support measures for the property sector are starting to take effect.
There has been a consistent decline in home prices on a monthly basis for some time now. Real estate business has significantly slowed down not only in major cities of China but also in Tier-2 and Tier-3 towns. As a result, new home prices continue to fall. However, there are opinions that this trend may change in the near future. According to surveys, 75.9% of people believe that home prices will stabilize in the coming days. In a recent survey of 70 cities, home prices increased in only three of them in October.
