In August of the current year, average new house prices in 100 major cities in China amounted to RMB 16,176/square meter ($2,250/sq.m.), down 0.01 percent month on month, while down 0.17 percent year on year, as announced by CIA, the largest independent property research organization in China.
Meanwhile, in August, the average second-hand house prices in the 100 major Chinese cities amounted to RMB 15,625/square meter ($2,173/sq.m.), down 0.38 percent month on month, 0.01 percentage points slower than the decline recorded in July, while down 2.29 percent year on year, 0.25 percentage points faster than the year-on-year decline recorded in the previous month.
Many cities in China have loosened restrictions on the real estate industry, and on September 1 first-tier cities, including Beijing and Shanghai, announced optimization of loan policies, signaling that those home buyers who want to improve their living conditions and buy a bigger home after selling their house could be eligible for lower interest rates and a lower downpayment ratio, which would significantly reduce the cost of loans and ease the pressure from high-ratio downpayments.