GROWTH in Chinese new-home prices quickened in October from a year ago, two private surveys showed, adding to signs of stabilization in the housing market after a raft of government support measures.

    Prices of new homes in 288 cities rose an average 1.4 percent in October from a year earlier, marking the third straight month of gains, a poll by property services firm Real Estate Information Corporation (CRIC) showed.

    Compared to the previous month, home prices in October were up 0.3 percent, easing from September’s 0.5 percent monthly gain, said CRIC, owned by E-House China Holding Ltd.

    A separate survey by China Real Estate Index System (CREIS) showed average prices in China’s 100 biggest cities rose 2.1 percent in October compared with year-ago levels, the third year-on-year rise in a row.

    “With the continuously loosening policy environment, housing demand will increase steadily in the coming months,” CREIS said in a statement.

    Home sales and prices have improved in bigger Chinese cities over recent months after a barrage of government measures as it looks to revive the key sector to arrest an economic slowdown.

    However, a full-blown recovery is not expected for some time as new investment in the sector remains weak and there is a huge overhang of unsold homes in many cities.

    Official data showed that home prices in China rose for a fifth consecutive month in September.

    During the first nine months, sales of residential and commercial property went up 15.3 percent year on year to 5.7 trillion yuan (US$896 billion), with the growth rate unchanged from that recorded in the first eight months, the National Bureau of Statistics data showed. Meanwhile, property investment grew 2.6 percent year on year.

    (SD-Agencies)