(Bloomberg) -- China home-price growth slowed for a third month in August, as an array of curbs help take the heat out of the housing market.
- New-home prices, excluding state-subsidized housing, rose 0.58% last month from July in 70 major cities, National Bureau of Statistics data showed Tuesday. That’s slightly slower than the 0.59% increase a month earlier.
- A report Monday showed home sales rose the fastest in 13 months, and the combination of robust sales and milder price growth is just what the government is after. Policymakers are trying to juggle the need to take the heat out of the housing market without hobbling a key plank of growth in a slowing economy.
- The challenge now will be maintaining that balance. Home sales will probably decline in the second half as the diminishing prospect of price growth deters buyers, according to Nomura Holdings Inc. property analyst Leif Chang.
- The slowdown was more noticeable in mid-size and smaller cities, while growth accelerated in larger cities including Shanghai and Shenzhen.
- The deepening slowdown is bad news for developers, already facing financing pressures, as they gear up for what is traditionally a strong sales season in September-October. Many have already shrunk their workforces in preparation for tough times ahead.
- The Unlikely Chinese Cities Where House Prices Rival London
- Evergrande Faces $53 Billion of Maturities in Tough Market
- Top Chinese Developers Shrink Workforce in Sign of Tough Times
- For more detail from Tuesday’s data, click here
To contact the editors responsible for this story: Katrina Nicholas at knicholas2@bloomberg.net, Peter Vercoe
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