New home prices in four Chinese first-tier cities rose by an average of 0.1 per cent last month, extending a four-month rebound and signalling a gradual recovery in market sentiment as housing stabilisation measures gain traction.
Compared with May, home prices edged up 0.3 per cent in Shanghai and Shenzhen and by 0.2 per cent in Guangzhou, according to data released by the National Bureau of Statistics on Wednesday. However, they fell 0.3 per cent in Beijing.
Among 70 large and medium-sized cities tracked nationwide, 20 saw month-on-month increases, up from 16 in May and the highest level since May last year, the bureau said.
Prices in first-tier cities were down an average of 1.3 per cent year on year last month, narrowing the decline by 0.4 percentage points from May. Only Shanghai recorded a year-on-year increase – of 3.1 per cent. Beijing saw prices fall 2.1 per cent year on year, Guangzhou was down 2.6 per cent and Shenzhen 3.6 per cent, but the pace of decline narrowed in Guangzhou and Shenzhen.
After years of sustained adjustments, the market has built up ability for self-repair
“The decline has narrowed for two consecutive months on a year-on-year basis,” said Yan Yuejin, vice-president of Shanghai-based property consultancy E-house China Research and Development Institute. “This indicator better captures the fundamental shifts in the property market, and signals that after years of sustained adjustments, the market has built up ability for self-repair.”