Home Economy China home prices fall as property slowdown threatens economic outlook

China home prices fall as property slowdown threatens economic outlook

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New home prices in China fell for the second consecutive month in October, as a property slowdown and mounting distress at real estate developers clouded the country’s economic outlook.

Prices for new homes across 70 of China’s biggest cities fell by 0.25 per cent in October compared with the previous month, according to data from the country’s National Bureau of Statistics.

The metric, which also edged lower in September for the first time in more than half a decade, highlights rising pressure on policymakers who have sought to limit debt growth across the real estate sector but are now confronted with liquidity issues at many developers.

Last week, the US Federal Reserve warned that stresses within the property sector, which directly and indirectly accounts for more than a quarter of economic activity in China, posed “some risk to the US financial system”.

Tommy Wu, an economist at Oxford Economics, a research group, pointed to a 24 per…

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