China’s new home prices extend declines

China’s house prices recorded the fastest decline in eight years in October, indicating a worsening stagnation in real estate even after the government intensified efforts to revive demand.

New house prices in 70 cities, excluding government-backed housing, fell 0.38% last month compared to September, when they fell 0.3%. This is the biggest drop since February 2015.

The fall in property prices adds new evidence that the housing market continues to decline after official figures showed a deeper contraction in real estate sales and investments.

The new stimulus measures implemented in major cities since August have not brought much improvement to the sector, which is hindering the recovery of the Chinese economy.

Only second-tier cities, mostly provincial capitals, experienced lower prices amid easing restrictions on home purchases. Prices in first-class cities also fell by 0.35%, marking a sharp deterioration from a 0.05% decline in the previous month.