China's New Home Prices Surge in October

In China, new housing prices saw a faster increase in October, traditionally a peak month for home searching. According to data compiled by the China Index Academy, the average price in 100 cities rose by 0.29% in October, up from a previous month’s increase of 0.14%. On an annual basis, the average price climbed 2.08%, compared to a 1.85% rise in September.

Authorities implemented a series of property easing measures at the end of September, including reducing the minimum down payment ratio for all housing categories to 15% and easing restrictions on home purchases. These incentive measures appear to have given a boost to the sector in several major cities. According to the survey, megacity Shanghai recorded the largest monthly increase in housing prices at 1.09%.

Data from the China Index Academy indicates that average new housing prices in smaller cities decreased by 0.02% compared to the previous month. In a separate survey released a day earlier by the Academy, the value of newly sold homes dropped by 34.7% year-on-year in the January-October period, while experiencing an increase of 10.53% in October.