China new home price rises at slightly faster pace in June

New homes prices in China rose at a slightly faster pace in June from a month earlier, a private survey showed on Friday driven by a slew of policy easing measures by small- and medium-sized cities to stimulate demand.

New home prices in 100 cities rose 0.04per cent, edging up from the 0.03per cent gain in May, according to survey data from China Index Academy, one of the country’s largest independent real estate research firms.

China’s depressed property market has shown some signs of improvement in recent weeks. Stimulus steps this year have mainly focused on helping home buyers, including subsidies, smaller down payments, and relaxations on home purchases.

Major homebuilder China Vanke Co (000002.SZ) said this week that the property market has bottomed in the short term, with a clear month-on-month rise in sales in June, helped in part by pent-up demand following months of Covid-19 restrictions. But Chairman Yu Liang cautioned the recovery will be slow and mild.

Among 100 cities surveyed by the research firm, 47 cities reported price growth in month-over-month terms, compared with more than 40 cities in May. Prices in tier-two cities, including provincial capitals, rose 0.14per cent, quickening from a 0.07per cent uptick in May. Xian, the capital of the northwestern province of Shaanxi, registered the biggest growth of 0.68per cent. “Local governments are likely to further implement city-specific policies,” like better terms for households with more than one child, said the Academy.

“The property market is expected to rebound in the second half of the year as confidence in home buying will gradually recover due to easier Covid-19 curbs and stimulus measures.”