China new home prices fall at fastest pace in over 9 years in August

BEIJING (Reuters) – China’s new home prices fell at the fastest pace in more than nine years in August, official data showed on Saturday, as supportive measures failed to spur a meaningful recovery in the property sector.

New home prices were down 5.3% from a year earlier, the fastest pace since May 2015, compared with a 4.9% slide in July, according to Reuters calculations based on National Bureau of Statistics (NBS) data.

In monthly terms, new home prices fell for the fourteenth straight month, down 0.7%, matching a dip in July.

Despite Beijing’s extensive supportive measures aimed mostly at revitalising demand in major cities, property markets continue to remain subdued.

China may cut interest rates on over $5 trillion in outstanding mortgages as early as this month, according to Bloomberg News.