In September of the current year, average new house prices in 100 major cities in China amounted to RMB 16,184/square meter ($2,254/sq.m.), up 0.05 percent month on month, while down 0.1 percent year on year, as announced by CIA, the largest independent property research organization in China.
Meanwhile, in September, the average second-hand house prices in the 100 major Chinese cities amounted to RMB 15,556/square meter ($2,167/sq.m.), down 0.44 percent month on month, 0.06 percentage points faster than the decline recorded in August, while down 2.59 percent year on year, 0.3 percentage points faster than the year-on-year decline recorded in the previous month.
On September 15, the People’s Bank of China (PBOC) announced a cut in the required reserve ratio (RRR) for financial institutions by 0.25 percentage points (excluding those that have already implemented an RRR of five percent), exerting a positive impact on market sentiments. Moreover, a series of stimulus policies have been issued to boost the real estate sector. More stimulus policies are anticipated to be issued to improve the market situation in the suburbs of first-tier cities and in the main urban areas of core second-tier cities. It is expected that the real estate market in core cities may see improvements, while more time is expected to be needed for a recovery in other second-tier cities and in third-tier and fourth-tier cities.