China's May new home prices fall for second month

China's May new home prices fell for the second month this year, official data showed on Thursday, depressed by still fragile demand as widespread COVID-19 curbs dented already weak buyer confidence in the property market. Average new-home prices in 70 major cities fell 0.1% on a month-on-month basis, after a 0.2% decline in April, according to Reuters calculations based on National Bureau of Statistics (NBS) data.

China's May new home prices fell for the second month this year, official data showed on Thursday, depressed by still fragile demand as widespread COVID-19 curbs dented already weak buyer confidence in the property market.

Average new-home prices in 70 major cities fell 0.1% on a month-on-month basis, after a 0.2% decline in April, according to Reuters calculations based on National Bureau of Statistics (NBS) data. From a year earlier, prices slipped 0.1%, down for the first time since September 2015 and retreating from a 0.7% gain in April.

New home price growth has eased since May last year due to a slowing economy, tight mortgage disbursement and as sentiment weakened amid a liquidity crisis that led to some high-profile loan defaults by developers. China's property sector, a pillar of growth, deteriorated further in recent months. The authorities are moving to spur home demand hit by COVID-19 curbs in some of the country's biggest cities.

In May, more than 100 cities implemented easing measures to support the property sector, mainly targeting home buyers, including cuts in mortgage rates, smaller down payments, and relaxation on purchases for some buyers. The central city of Wuhan on May 22 eased home purchase curbs for some buyers, allowing households with more than one child to buy up to three properties.

In May, 25 out of 70 cities surveyed by the NBS reported an uptick in new home prices from the previous month, compared with 18 cities recording a gain in April. China's property market woes are likely to worsen this year with prices remaining flat and sales and investment falling further, according to a recent Reuters poll.

Property sales by floor area in May fell at a slower pace for the first time in three months. To boost demand, financial authorities last month cut their benchmark rate for mortgages and lowered the mortgage rate floor for first-time home buyers.

More easing policies targeted to help demand are expected in the coming months to stimulate the sector. (Editing by Jacqueline Wong)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)