China June new home prices flat in weakest showing this year
By Liangping Gao and Ryan Woo
BEIJING (Reuters) -China's new home prices were unchanged in June, the weakest result this year, data showed on Saturday, increasing pressure on policymakers for more stimulus as the country's economic recovery falters.
The flat result from a month earlier, with rises slowing nationwide, was below May's 0.1% gain, according to Reuters calculations based on National Bureau of Statistics (NBS) data. Prices were also unchanged from a year earlier, retreating from a 0.1% increase in May.
The property sector, accounting for one-fourth of activity in the world's second-biggest economy, slumped sharply last year as developers defaulted on debts and suspended construction of presold housing projects.
The central and local governments and regulators have announced a slew of policies over the past year to prop up the sector.
Measures have ranged from extended financial support for developers to multi-pronged incentives for home buyers. But the uncertain economic outlook and persistent weakness in the sector have dented confidence and home demand, dampening hopes for any quick revival.
Weakness in home prices and falling exports are adding to pressure on policymakers to take do more to prop up the real estate and revive sluggish demand.
Markets widely expect more stimulus around a meeting of the ruling Communist Party's Politburo late this month, setting the tone for economic policies in the second half of the year.
«The property market is in dire need of strong policies to boost confidence as small-scale policies can no longer rescue the dwindling sentiment,» said analyst Chen Xiao at property data provider Zhuge House Hunter.
Policies such as boosting employment and incomes must strengthened to
Read more on investing.com
