Average new-home prices in 70 major cities fell 0.1 percent on a monthly basis, after a 0.2 percent decline in April, according to calculations of data from the National Bureau of Statistics (NBS). Existing-home prices declined 0.39 percent from a month earlier, the largest drop since February 2015.
Shares of property developers retreated on Thursday, after staging a broad rally on Wednesday. The CSI 300 Real Estate index slid 1.3 percent today.
In May, 43 out of the 70 cities saw a month-on-month drop in new home prices, down from 47 in April, while 53 cities witnessed a slide in resale home prices, up by 3 from the previous month, said Sheng Guoqing, an analyst at the statistics bureau.
More cities reported monthly growth, as 25 out of the 70 cities recorded a month-over-month increase in home prices last month, up from 18 cities in April, he added.
Home prices in first-tier cities, which include the four cities that contribute the most to the Chinese economy, rose 0.4 percent in May from the previous month, accelerating from a 0.2 percent increase in April, according to the NBS. Prices in second-tier cities were flat, while the price decline for third-tier cities narrowed.
Local authorities in China have been stepping up efforts to arrest a property slowdown that has weighed on the world's second-largest economy for almost a year. These include urging banks to lend more, easing mortgage costs and partially relaxing ownership rules.
There have been early signs that the market may be bottoming. Last month's new-home sales rose nearly 30 percent from April, the first month-on-month gain since December, NBS data showed Wednesday. Property investment also picked up 14 percent from the previous month.
Positive changes have taken place in the property sector thanks to a series of supportive measures to stabilize the market, and real estate's gradual stabilization will also promote overall economic stability in the second half, the NBS said on Wednesday.
On June 16, the National Bureau of Statistics released housing price data for 70 cities. In May, the sales price of commercial housing in 70 large and medium-sized cities continued to decline overall from the previous month, but the decline slowed down. The number of cities with newly built commercial housing decreased month-on-month; the year-on-year increase in sales price of commercial housing in first-, second-, and third-tier cities all fell back or the decline expanded, and the number of cities with year-on-year decline increased.
In May, among the 70 large and medium-sized cities, the sales price of newly built commercial residential buildings decreased month-on-month in 43 cities, 4 fewer than the previous month. The price index of newly built commercial housing in 25 cities increased month-on-month, 7 more than in April. Among them, Guangzhou, Shenzhen, and Beijing increased by 0.5%, 0.5%, and 0.4% respectively. Chengdu led the country with a 0.9% increase; Shanghai remained unchanged month-on-month.
Compared with the month-on-month decline in 50 cities in April, the range of second-hand house price declines in May has expanded. In May, among 70 large and medium-sized cities, the sales price of second-hand housing fell in 53 cities, an increase of 3 from the previous month. Beijing fell 0.1%, Shanghai remained unchanged month-on-month; 15 other cities increased month-on-month, with Guangzhou and Shenzhen rising 0.2% and 0.1% month-on-month respectively.
On Wednesday, Fu Linghui, spokesperson of the National Bureau of Statistics and director of the Department of Comprehensive National Economic Statistics, said at a press conference that at present, it should be said that the real estate market as a whole is in a downward trend this year. However, it should also be noted that as the long-term mechanism of the real estate market continues to be improved, we insist on housing for living and not for speculation, continue to stabilize housing prices, land prices, and expectations, implement city-specific policies, and actively promote the construction of affordable housing and long-term rental housing, which is conducive to the healthy development of the real estate market. "Judging from recent surveys, the real estate market has seen some positive changes."
Although the year-on-year decline of many indicators in the first five months expanded, looking at the single month of May, many indicators showed a month-on-month rebound. According to data from the National Bureau of Statistics, in May alone, real estate development investment rebounded by 14% month-on-month, newly started construction area rebounded by 20.1% month-on-month, and land purchase area increased by 45.9% month-on-month; national commercial housing sales area increased by 25.8% month-on-month, and commercial housing sales increased by 29.7% month-on-month; real estate companies' funds in place increased by 14.7% month-on-month.
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