China’s new home prices fell at the fastest pace in 11 months in September, worsening the property sector’s drag on broader economic growth as policymakers struggle to revive the flailing market, reports Reuters. Persistent property market weakness is weighing on consumer confidence and sapping household spending, building the case for policymakers to step up support to shore up growth amid global trade threats.
New home prices fell 0.4% month-on-month, following a 0.3% fall in August, according to calculations by Reuters based on National Bureau of Statistics data. Year-on-year, prices fell 2.2% in September versus a 2.5% drop in August.
September and October are traditionally the peak season for property buying as developers launch sales campaigns to attract consumers during national holidays. But a prolonged property downturn since 2021, marked by many developers failing to repay debt and complete presold homes, has soured consumer sentiment.