The average price of newly built homes in 100 Chinese cities registered at 12,825 yuan (U.S.$1,877.47) per square meter in October, increasing 1.65 percent with the growth rate dropping by 1.18 percentage points from the previous month, as shown by statistics from a private property research institute.
In 100 Chinese cities, 21 cities saw decreases in new home prices in October, said China Index Academy in its monthly report.
The institute attributed the slowdown in price rise to regulatory policies launched in more than 20 cities in early October, which, the institute believed, gradually fostered more rational market expectations.
The city-tailored policies helped curb irrational investment demands in hot markets and prompted real estate developers to lower their prices, the report said.
According to E-house China R&D Institute, another Chinese property research agency, sales of floor space fell in October due to the regulatory policies.
In Beijing, Shanghai, Guangzhou and Shenzhen, the floor areas sold of new commercial residential buildings totaled 3.48 million square meters in October, down by 3.3 percent as compared to the previous month and 0.8 percent from the same period of last year. Specifically, the floor areas sold dropped 19.7 percent and 16.1 percent in Beijing and Shanghai, respectively, and increased 5.1 percent and 52.9 percent in Guangzhou and Shenzhen, respectively, as compared to September.
In smaller cities, the number of transactions also declined. In particular, sales of floor space dropped 55.4 percent, 53.0 percent and 50.7 percent in Suzhou, Fuzhou and Nanjing, respectively.
Yan Yuejin, an analyst from the E-house China R&D Institute, said that the fall in transactions showed that the regulatory policies have worked. Therefore, he predicted that in major cities, the figure might continue to fall, further slowing down rises in housing prices and promoting a rational and steady development of the housing market.
Since Sept. 30, 21 cities, including both first-tier cities and smaller cities, have rolled out 26 policies ranging from higher down payments to home purchase restrictions to curb speculative housing purchases.
