China new home prices slow in December

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China new home prices slow in December

In Beijing, residential and office buildings are seen.

BEIJING Reuters -- China's new home prices fell more slowly in December than a month earlier, official data showed on Saturday, indicating stabilising demand due to marginal easing on financing curbs and promotions by property developers.

In China's 70 major cities, the average new home price fell 0.2% in December from a month earlier in the month, a decline of 0.3% in November, according to data released by the National Bureau of Statistics. China's property market has slowed since June 2021, triggering defaults at some heavily indebted companies, according to data released by the National Bureau of Statistics.

In December, the authorities and property developers in multiple cities introduced measures to boost home sales, with local governments providing subsidies for home buyers and real estate firms offering discounts.

In 15 of 70 cities, monthly prices went up from nine cities that reported price gains in November.

In December, new home prices increased by 2.6% year-on-year, slower than the 3.0% growth recorded in November.

In a recent note, Oxford Economics analysts said that central and local authorities should take measures to contain risks from defaults by property developers, such as increasing credit to the sector and changing the three red lines policy to curb borrowing by developers.