New home prices fell in May for the second month in a row this year due to still fragile demand, as widespread coronavirus restrictions have already eroded buyers’ confidence, suggesting more policy incentives are needed to get the market back to growth. .
Average new home prices in the 70 major cities fell 0.1% on a monthly basis, after falling 0.2% in April.
Compared to the previous year, prices fell 0.1%, lower for the first time since September 2015 and declining from the rise of 0.7% in April.
On an annual basis, growth has slowed since May last year due to the slowdown in the economy, tight mortgage disbursements and a weakening climate amid a liquidity crisis that has led to a halt in payments by some construction companies.
China’s real estate sector, which has traditionally been a pillar of growth, has deteriorated further in recent months, prompting authorities to take steps to boost demand from households hit by coronavirus restrictions in some of the country’s largest cities.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
