Economy

More Chinese cities see housing prices decline

(Xinhua)
Updated: 2011-04-18 13:24

BEIJING - More Chinese cities saw month-on-month decline in housing prices in March as the government continued its efforts to cool the property market, according to a statement from the National Bureau of Statistics (NBS) on Monday.

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Month-on-month prices for new homes were reported decline in 12 of the 70 cities in the NBS' statistical pool. In contrast, only eight of these cities reported declines in February. Prices stood unchanged in another eight cities, while 29 cities posted small price increases.

In the second-hand housing market, 16 cities reported price declines in March, up from four in February. Prices for second-hand homes remained unchanged in 10 cities, according to the NBS.

However, only two cities reported drops in prices for new homes over the course of the full year. For second-hand homes, prices declined in five cities over the year-to-year period, and 41 cities reported price increases of less than 5 percent.

The NBS stopped releasing overall housing prices for 70 major cities in January of this year, citing the fact that overall price figures for these cities failed to reflect regional differences. The NBS is also using a new surveying method to determine price changes.

The Chinese government has repeatedly stressed its efforts to cool the runaway property market and adopted various measures to curb rising property prices, including restricting residents in 35 major cities from buying second or third homes, requiring higher down payment requirements for mortgages and instituting new property taxes in the cities of Chongqing and Shanghai.

The government has also introduced a raft of new monetary policies that have raised borrowing costs for developers and reined in market liquidity, with the People's Bank of China, the central bank, announcing a new increase in its reserve requirement ratio last weekend. This was the fourth such increase this year.