A record 54 of the 70 Chinese cities tracked by the government saw a drop in home values last month, as developers lowered prices to increase sales amid housing curbs.
According to new data released by the statistics bureau, the eastern city of Wenzhou recorded the largest decline of 14 percent from the previous year. Shanghai and Beijing recorded losses of up to 1.6 percent.
China is keen on keeping a tight rein on the housing market despite slow economic growth, which prompted the central bank to cut borrowing costs on June 7, a first since 2008.
The Housing Ministry noted that the country will continue its cooling measures, which have included higher down payments as well as restrictions on the number of homes bought.
“China’s property market is approaching gently the bottom of its decline path and I expect we’ll see a touchdown sometime over the next three to four months,” said Peter Churchouse, Managing Director of Portwood Capital, a Hong Kong-based property investment firm.
“They’ve definitely succeeded in slowing the market down. They’ve engineered it pretty nicely so far.”
In comparison, 46 Chinese cities posted declines in new home prices for the month of April.
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