China's 1.34 Trillion Investment Ineffective? New Home Prices Fall for 11 Consecutive Months, Reaching 10-Year High

Reported about 1 year ago

Despite China's efforts, including loosening home purchase restrictions in Shanghai, Shenzhen, and Guangzhou, to boost the sluggish property market, new home prices have dropped for 11 consecutive months, with May recording the largest decline since October 2014, in nearly a decade. Measures such as a 300 billion yuan (approximately 1.34 trillion New Taiwan Dollars) set by the People's Bank of China for affordable housing refinancing and encouraging local governments to purchase vacant homes for low-income housing have been introduced, but their effectiveness is yet to be seen. Recent data from China's National Bureau of Statistics shows a 0.7% monthly drop in new home prices in 70 large and medium-sized cities in May, with a staggering year-on-year decline of 3.9%.

Source: YAHOO

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