Chinese price decline slows

Country:  China

27 May 2009

Residential values in China fell for the fifth straight month in the country's 70 medium and large cities in April, down 1.1% year-on-year, according to the National Development and Reform Commission.

Comparable data shows that last month’s annual price fall is an improvement on the 1.3% recorded in March, and 1.2% in February. But the decline remains greater than the 0.9% recorded in January and 0.4% in December.

New-build homes in China posted the largest annual fall, dropping by an average of 1.7%, which is actually up 0.3% from a month earlier.

The amount of money being invested into China’s property sector has also risen. The National Bureau of Statistics report that £55bn was invested in property during the first four months of this year, an annual increase of 4.9%.

The greatest demand is for homes situated in Shanghai. The volume of new homes sold in the city last month rose 25% month-on-month, while the annualised surge stood at 97%, according to Shanghai Uwin Real Estate Information Services Co.

A total of 28,600 residential resale units were sold in Shanghai in April, up 11% from March.

See Also:   China