China July home prices fall, even as Beijing eases suburban purchase restrictions | investingLive

Recapping the data from earlier.

China’s new home prices fell for a second month in July, down 0.3% from June, though the decline narrowed slightly in major cities as more local governments introduced homebuying incentives. Reuters calculations from National Bureau of Statistics data show 60 of 70 surveyed cities recorded month-on-month drops, compared with the same pace in June.

On an annual basis, prices fell 2.8%, easing from June’s 3.2% drop. If there is a glimmer of not so bad news its that the year-on-year decline narrowed modestly across all city tiers. Policymakers view stabilising the property market — once a quarter of China’s economic activity — as crucial to meeting the “around 5%” GDP growth target amid domestic weakness and external pressures.

Despite multiple rounds of demand-boosting measures and liquidity support for developers, a sustained recovery remains elusive. Recent moves include allowing greater use of housing provident funds, offering purchase subsidies, and, in Beijing’s case, scrapping suburban buying curbs in August while keeping restrictions within the fifth ring road.

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Related, further official data on Friday showed China’s property investment fell 12.0% year-on-year in January–July, a deeper drop than the 11.2% decline recorded in the first half of the year.