China's home prices see narrowed drops as policy supports unfold

BEIJING, July 15 (Xinhua) -- Major Chinese cities reported falling home prices in June with narrowing declines, official data showed on Monday.

On a monthly basis, more cities reversed the declining trend in home prices. In terms of new homes, 64 out of 70 major cities saw their prices decline, while in terms of resold homes, 66 out of 70 major cities saw their prices fall, the National Bureau of Statistics (NBS) said.

New home prices in China's first-tier cities, namely Beijing, Shanghai, Guangzhou and Shenzhen, fell 0.5 percent month-on-month, 0.2 percentage points narrower than the previous month. Prices in third-tier cities also witnessed smaller declines.

Second-hand home prices fell by 0.4 percent month on month in first-tier cities, with the decline narrowing by 0.8 percentage points from the previous month. Especially, Beijing and Shanghai saw prices rise for the first time this year, up by 0.2 percent and 0.5 percent, respectively.

On a yearly basis, new home prices decreased in most cities in June. As for second-hand homes, their prices in first-tier cities fell by 9 percent year on year, with the decline narrowing by 0.3 percentage points from the previous month.

The NBS noted the rising vitality of the property market, saying that policy effects have gradually emerged.

According to the NBS, citing housing and other departments, the contracted floor area of second-hand homes has increased year on year in recent months.

In May, China implemented a series of policies to support the property market, including reducing minimum down payment ratios, removing commercial mortgage rate floors for first and second homes, and establishing a re-lending facility for government-subsidized housing projects.