China property prices fall 0.9% year-on-year

Country:  China

23 February 2009

Average property prices in China’s 70 major cities fell 0.9% year-on-year in January, a faster rate of decline than in December, according to data compiled by the National Development and Reform Commission (NDRC).

New home prices in the 70 large and medium-sized cities depreciated 1.4%, compared to the same period last year, and 0.6% month-on-month.

The greatest new home price fall was recorded in Shenzhen (down 16.5%), followed by Guangzhou (-9%) and Xiamen (-5.6%).

Affordable homes targeted at low-income earners in major cities was priced 0.4% higher than in January 2008.

The dismal economic climate and future fears have dampened demand for homes in China, according to Yin Bocheng, chief of the real estate research center under Fudan University.

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