China’s home prices have fallen for 9 consecutive months as demand remains weak

China’s National Bureau of Statistics (NBS) announced that Chinese house prices fell for the 9th consecutive month in May, indicating weak demand. The government will have to take measures to revive the depressed property market.

New home prices in 70 major cities in China, which do not include government-subsidized housing, fell 0.17% in May after declining 0.3% in April.

The prices of a used house in May, fell by 0.39% compared to the previous month. This is the largest decline since February 2015.

The figure shows that the Chinese real estate sector is still far from recovery. And that’s amid an employment crisis including the current economic situation, which is still weak. The Chinese will stock up on cash this year suggesting that people are facing more difficult times, although some cities will lift the freeze and then.

Chinese officials are trying to get a handle on the slowdown in the real estate sector that has been affecting the Chinese economy for nearly a year. That includes stimulating the bank to lend more, lowering borrowing costs and relaxing rules on home ownership.

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