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China home prices fall 5.7 percent from last year in May

Published 18/06/2015, 02:56
© Reuters. A sales assistant speaks to a customer in front of a model of a residential complex, at a real estate exhibition in Shanghai

(Reuters) - Average new home prices in China's 70 major cities fell for the ninth consecutive month in May from a year earlier, down 5.7 percent.

The figure compares to a fall of 6.1 percent in April. Among the 70 cities, Shenzhen was the top performer, recording the second consecutive month of rebound, up 7.5 percent following a 0.7 percent rise, the National Bureau of Statistics said on Thursday.

New home prices in Shenzhen rose 6.6 percent in May from April.

Beijing and Shanghai's new home prices both fell 2.3 percent last month from a year earlier, versus the previous month's drop of 3.2 percent and 4.7 percent respectively.

They were up 1.1 percent and 2.2 percent respectively from the previous month.

China's real estate investment growth continued to slow in the first five months of 2015 to the lowest since May 2009, with inventory levels remaining high in lower-tier cities, despite signs of overheating recurring in Shenzhen.

© Reuters. A sales assistant speaks to a customer in front of a model of a residential complex, at a real estate exhibition in Shanghai

The weak property market is seen as one of the major risks for the economy, which looks set to show its lowest growth in 25 years this year.

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