MORE Chinese cities reported slower growth in home prices in September as tightening measures continued to take effect, China's top statistic bureau said yesterday.
New home prices, excluding those of government-funded affordable housing, fell or remained unchanged month-on-month in 46 of the 70 cities monitored by the government in September, the National Bureau of Statistics reported.
The number was the same as in August but one more city reported a decline in September, the bureau said.
"The rapid growth in property prices has been markedly contained. Government's control efforts have achieved positive results as prices in some cities begin to retreat," said Sheng Laiyun, spokesman with the statistics bureau.
"But we cannot relax, and should further cement results of the control," he added.
On a month-on-month basis, the number of cities reporting a fall or no change has increased continuously from 14 in April to the current 46 after restrictions on home purchases spread from Shanghai and Beijing to more than 40 cities nationwide. Since April, China has tightened control on the property market.
Slow fall
On a year-on-year basis, the bureaus said that Wenzhou was the only city among 70 that has seen lower home prices. But a total of 59 cities reported slower growth in September from a year ago, 19 more than in August.
Analysts said home prices may keep falling slowly in the coming months without easing of government policies.
"Since Wenzhou leads other places in terms of liquidity conditions, we think this is also the direction other cities' housing markets will follow in the coming months," said Yao Wei, an economist with Societe Generale. "There are clearer signs of cooling in China's property sector, and we think September probably marked the beginning of a correction (in price)."
She estimated that the government will not consider easing the controls until it sees prices down 5 to 10 percent from now.
Wendy Liu, an economist with the Royal Bank of Scotland, agreed and said that policy makers cannot afford to loosen too soon. She expected the government to roll out property taxes to more cities in 2012 and said it may introduce a capital gains tax on property gains over time.