BEIJING, June 1 (Reuters) - China's new home prices fell for the first time in four months in May and home sales slumped, according to a private survey, adding to pressure on a property market which is struggling to stabilize from a sharp slump.
New home prices among 100 cities fell 0.01% month-on-month in May from 0.02% growth the previous month, according to survey data from the China Index Academy on Thursday.
Home sales by value by property developers fell 18.8% from a month earlier, the independent real estate research firm said in a separate statement on Wednesday.
"The real estate market was under greater adjustment pressure and homebuyers' sentiment continued to fall in May," said the firm.
The property sector gained a boost from the lifting of tough COVID curbs in December, low mortgage interest rates and a slew of policy support measures.
Demand, however, remains bleak in small cities as consumers are still cautious about big ticket spending amid concerns over incomes and jobs as a post-pandemic economic recovery loses steam.
Among 100 cities surveyed by the firm, 29 cities reported a rise in home prices in monthly terms.
"We see no sign of a new round of big easing/stimulus for the property sector yet, even markets have been increasingly worried about the weakness of the property markets and its spillover effect," said Nomura in a research note on Thursday.
"These (bearish) property market data will likely further weigh on China-related assets in the next couple of weeks," said Nomura.
Reporting by Liangping Gao and Ryan Woo; Editing by Kim Coghill
June 1, 2023, at 2:23 a.m. BEIJING (Reuters) - China's new home prices fell for the first time in four months in May and home sales slumped, according to a private survey, adding to pressure on a property market which is struggling to stabilize from a sharp slump.
China house prices grew 10.8% YoY in Apr 2023, following an increase of 6.3% YoY in the previous month. YoY growth data is updated monthly, available from Mar 1999 to Apr 2023, with an average growth rate of 7.7%.
Sentiment for China's property sector, for years a pillar of growth in the world's second-biggest economy, has been crushed by multiple crises since mid-2021, including developers' debt defaults and stalled construction of pre-sold housing projects.
Property Price: YTD Avg: Shanghai data was reported at 44,762.310 RMB/sq m in Apr 2023. This records an increase from the previous number of 44,373.156 RMB/sq m for Mar 2023. Property Price: YTD Avg: Shanghai data is updated monthly, averaging 15,552.564 RMB/sq m from Jan 2003 to Apr 2023, with 244 observations.
The average price of a new house in China increased 4.1 per cent on an annual basis to 10,588 yuan (US$1533) per square metre in the first two months of 2023, the first rise in 11 months, according to data released by the National Bureau of Statistics of China on Wednesday.
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