China’s New Home Prices Deteriorated Further In May

New home prices (excluding affordable housing) fell in 35 of 70 medium-to-large-sized Chinese cities in May, up from April’s 8 cities that saw price reductions, according to data released by the National Bureau of Statistics.

A total of 8 among the 70 cities saw home prices increase compared with 44 cities in April.

Zhengzhou city saw housing prices increasing the most on a month-on-month basis, up 0.3%, while Hangzhou dropped the most at the rate of 1.4%. The largest housing price decreased 0.7% in May.

On a year-on-year basis, new home prices rose 5.6% on average across the country, the slowest gain in 13 months, according to Reuters’ calculations based on official data.

In Beijing, new home prices rose 7.7% in May year-on-year compared with April’s 8.9% increase, while prices in Shanghai were up 9.6% year-on-year, down from the 11.5% upswing in April.

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