China's New Home Prices Edged Down in September Amid Speculation Curbs

BEIJING--China's September new home prices declined for the first time since March 2015, amid tighter measures to curb housing speculation and cool the property sector.

Average new home prices in China's 70 major cities edged down 0.08% in September from the previous month, compared with a 0.16% increase in August.

Meanwhile, fewer cities reported a price increase from the prior month, with prices of new homes rising only in 27 out of 70 cities in September, down from 46 cities in August, according to data released by the National Bureau of Statistics on Wednesday.

Prices for newly built apartments and secondhand homes for all cities showed a slight decline compared with a month earlier, and the increase compared with a year earlier continued to slow, said Sheng Guoqing, chief statistician at the statistics bureau's urban division.

Compared with a year earlier, average new home prices rose 3.26% in September, slowing from 3.70% in August. New home prices rose in 59 of 70 cities in September from a year earlier, the same as reported in August.

As Beijing further tightened rules in the red-hot property sector, including imposing borrowing curbs on developers and limiting their financing sources, local governments, which get roughly a third of their revenue from selling land to property developers, have become concerned.

Harbin, the capital of Heilongjiang province in northeastern China, has become one of the first Chinese cities to introduce measures to support property developers and provide subsidies for home buyers. Home prices in Harbin fell 0.7% in September from a year earlier.

Write to Singapore Editors at singaporeeditors@dowjones.com


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  10-19-21 2229ET
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