The average price of new homes in 70 Chinese cities fell at a faster pace in August, as property developers continued to cut prices to attract buyers amid a market downturn.
The average price of new homes in 70 cities fell for the fourth straight month in August, declining 1.10 per cent from July, according to calculations by The Wall Street Journal, based on data released Thursday by the National Bureau of Statistics.
This compares with a 0.89 per cent on-month fall in July and a 0.47 per cent fall in June. On an annual basis, the average price in August rose 0.51 per cent, moderating from a 2.43 per cent increase recorded in July.
Real estate and construction are important drivers of growth in the Chinese economy, accounting for more than 20 per cent of gross domestic product in the world's second largest economy, when cement, steel, chemicals, furniture and other related industries are factored in, analysts estimate.
Excluding public housing, private sector home prices fell in 68 of the 70 cities in August, up from the 64 cities that posted declines in July. Home prices only rose in the southeastern city of Xiamen, and were flat in the coastal city of Wenzhou.
Housing sales have also dropped this year. Home sales in China in the first eight months of the year fell 10.9 per cent to 3.43 trillion yuan ($559 billion), official data showed on Saturday.
In recent months, local authorities in at least 30 cities have also loosened property restrictions to lure buyers back into the market, but there has been little effect.
Average price of new homes in 70 Chinese cities declined at faster pace in month.
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