China new home prices inch up for third month in November – survey

BEIJING (Reuters) – China’s new home prices rose slightly for a third straight month in November, a private survey showed on Friday, as the crisis-hit property sector struggles to stabilise despite a slew of government support measures.

Prices rose 0.05% on average from the previous month after gains of 0.07% and 0.05%, according to the survey by real estate research firm China Index Academy.

Only 38 of the 100 cities surveyed reported increases in new home prices.

China’s property sector, which makes up about one-quarter of the world’s second-biggest economy, has stumbled from crisis to crisis in a major blow to consumer and investor confidence, keeping economic growth from resuming a solid footing this year.

Government support for the property sector in recent months has included easing curbs on home purchases and cutting mortgage costs.

China Index Academy said in a report the policy direction for the national property market was clear, and support from the supply and demand sides was expected to continue until the market shows recovery.

A Reuters poll on Wednesday found expectations for 1% growth in new home prices next year, little changed from an August poll.

“Beijing is turning more proactive to stabilise growth and the new dual-track housing model may help stabilise the property sector in the coming quarters,” HSBC said on Thursday.

“This includes making affordable housing accessible and allowing the commercial real estate to return to its commercial nature, i.e., it could be for living or for speculation.”

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