In July this year, of 70 major Chinese cities surveyed, new house prices in first-tier cities remained stable month on month, while rising by 1.0 percent year on year, 0.3 percentage points slower compared to the rising pace recorded in June, as announced by China's National Bureau of Statistics (NBS).
In China’s second-tier cities, prices of second-hand houses in July saw a year-on-year decline of 2.7 percent, with the declining pace 0.3 percentage point faster compared to that recorded in June this year. In third-tier cities, the year-on-year growth rate of second-hand house prices in June saw a year-on-year decrease of 3.5 percent, with the decreasing pace 0.1 percentage point faster compared to that recorded in June.
Among 70 major Chinese cities, there were less cities eyed year-on-year rises in their new house prices, signaling the continuous poor performance in real estate market.
As an important industry affecting China’s economic development, the poor performance in real estate industry has garnered market players’ and experts’ worries, thereby Chinese policymakers have issued several stimulus policies, aiming to boost its development. Market players expect more stimulus policies in the near future, for instance, the cut in interest rates, the loosening on purchasing restrictions in the first-tier cities and less downpayment etc.—which might exert a positive impact on real estate industry and bolster the demand for steel.