China home prices fall for second month

The average home price in China’s 100 key cities fell 0.23 per cent in October from a month earlier, following Beijing’s tightening measures to curb the exuberant housing market, a private survey showed on Tuesday.

The China Real Estate Index System (CREIS), affiliated with Soufun, the country’s largest online real estate firm, said the average home price dropped to 8,856 yuan (S$1,770) per square metre in October, marking the second consecutive monthly decline.

The CREIS said in its previous survey that the average home price fell 0.03 per cent in September from August, marking the first monthly drop in a year.

Housing prices in the country’s 10 most expensive property markets also dropped an average 0.42 per cent in October from September, with Shanghai’s home prices falling 0.44 per cent and Beijing declining 0.23 per cent, it added.

Among the 100 cities monitored, prices rose month-on-month in 40 cities, remained flat in two cities and fell in 58 cities in October.

The CREIS data is closely watched by investors who believe that it foretells a price trend in the real estate market much better than official figures issued by the National Bureau of Statistics.

The official data is based on the price changes in 70 major cities, and October home price data will be published on Nov 18.

Source : Today – 2 Nov 2011

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