The decline in new home prices in China accelerated in July, with smaller, lower-tier cities suffering the sharpest falls, according to Goldman Sachs calculations based on government data.
New home prices declined 2.5 per cent month-on-month on a seasonally-adjusted annualised basis, a faster decline than June’s fall of 2.2 per cent.
In first- and second-tier cities, prices fell 0.1 per cent and 0.5 per cent, respectively, while third- and fourth-tier cities registered drops of 3.9 per cent and 3.3 per cent.
Year on year, the weighted average new home price across 70 large and medium-sized cities was unchanged.
China’s property sector is battling with flagging demand and a renewed liquidity crisis.