Growth in Chinese home prices slows: report

Growth in new home prices in 70 major cities across the country continued to slow in September, according to the latest report by international real estate service provider Savills.

Month-on-month price growth in the cities declined to 0.53 percent last month from 0.58 percent in August.

Of the 70 cities, 53 recorded growth on a monthly basis, five remained flat, while the remaining 12 showed decline.

The property markets in small cities have been affected by the slowdown of the manufacturing industry, which is the first to bear the brunt of the nation’s slower growth. Meanwhile, in leading cities, the property market continues to grow, benefiting from favorable policies to reform their service and financial industries, the report said.

Shenzhen recorded the fastest growth with average new home prices increasing 1.2 percent in September from a month earlier.

"With the aim of building itself into a pilot demonstration area, Shenzhen will carry out comprehensive reforms in law, finance, medical service and other fields. Moreover, the construction of Guangdong-Hong Kong-Macao Greater Bay Area is also a boon for Shenzhen. These factors will play a supporting role in promoting Shenzhen’s property transaction volume and price growth," said Woody Lam, managing director of Savills southern China.

New home prices in Shanghai grew slightly last month, 0.5 percent on a monthly basis. Beijing and Guangzhou, meanwhile, remained stable, with no growth in September.

Average new home prices in the 70 cities rose 8.57 percent in September compared with the same period a year earlier.