Home prices in 70 large and medium-sized cities fell 0.3% month-on-month in August, according to a weighted average index that Refinitiv calculated from data from the National Bureau of Statistics (NBS). Printing followed 0.0% in July.
On an annual basis, house prices fell by 1.3% in August, which was greater than the 0.9% drop in July and was the worst result since August 2015. Accordingly, the average annual growth of house prices fell to 1.4% in August (July: + 1.8%). This indicates a deteriorating trend in the sector.
Other housing market indicators continued to show a downturn in the property market, with declines in real estate investment and residential housing starts deepening in January-August compared to January-July. New Covid-19 restrictions, weak consumer sentiment and indebted developers will keep the property market calm in the near term, despite interest rate cuts by the central bank and a partial unwinding of property market restrictions.