THE country’s average home prices fell in August for the fourth straight month, although at a slower pace, as property developers continue to struggle with excess supply.

    Average new-home prices fell 0.6 percent in August from July, moderating from the 0.8 percent decline in July, data provider China Real Estate Index System (CREIS) said late Sunday. Average new-home prices declined 0.5 percent in June and 0.3 percent in May. May’s decline was the first month-on-month decline since June 2012.

    Out of the 100 cities surveyed, 74 showed a decline in home prices, down from 76 in July.

    “The macro economy has stabilized following the government’s targeted stimulus, though downside risks remain,” said CREIS analysts in the data release. “More cities have been easing or canceling home purchase restrictions and while the overall credit policy hasn’t been loosened, the mortgage environment in some cities has improved.”

    From a year earlier, average new-home prices rose 3.15 percent in August, decelerating from 4.72 percent in July, the survey said. This is the weakest gain since February 2013, when home prices rose 2.5 percent year-on-year.

    The latest data come as some local governments in Hangzhou and Xi’an intensified efforts to ease property curbs to boost sales, after previous efforts bore little fruit. In Hangzhou, buyers can purchase their second homes in the city center, after previous easing was only limited to certain districts. In Xi’an, second-home buyers can now purchase bigger homes. Local governments have been loosening property curbs to support the housing market in the past few months.

    China’s housing market has been sluggish so far this year, as a glut of apartments compelled property developers, especially in smaller cities, to slash prices to boost sales. (SD-Agencies)