China home price gains quicken in October

Growth in Chinese new home prices quickened in October from a year ago, two private surveys showed, adding to signs of stabilization in the housing market after a raft of government support measures.

Prices of new homes in 288 cities rose an average 1.4 percent in October from a year earlier, marking the third straight month of gains, a poll by property services firm Real Estate Information Corporation(CRIC) showed.

Compared to the previous month, home prices in October were up 0.3 percent, easing from September’s 0.5 percent monthly gain, said CRIC, owned by E-House China Holding Ltd (EJ.N).

A separate survey by China Real Estate Index System(CREIS) showed average prices in China’s 100 biggest cities rose 2.1 percent in October compared with year-ago levels, the third year-on-year rise in a row.

“With the continuously loosening policy environment, housing demand will increase steadily in coming month,” CREIS said in a statement.

Home sales and prices have improved in bigger Chinese cities over recent months after a barrage of government measures as it looks to revive the key sector to arrest an economic slowdown.

However, a full-blown recovery is not expected for some time as new investment in the sector remains weak and there is a huge overhang of unsold homes in many cities.

Official data showed that home prices in China rose for a fifth consecutive month in September.

The government is due to publish its October price data for 70 major Chinese cities on Nov. 18 after reporting its property sales and investment figures on Nov. 11.