NEW home prices in China grew slightly faster in March after growth slowed in the previous month, putting a floor on the cooling market, as the government rolled out stimulus to boost the economy.

Average new home prices in China’s 70 major cities rose 0.6 percent in March, quickening from a 0.5 percent gain in February, according to media calculation of data released by the National Bureau of Statistics (NBS) yesterday.

On the whole, it logged the 47th straight month of price increases. Most of the 70 cities surveyed by the NBS reported monthly price increases for new homes, and the number climbed sharply to 65 from 57 in February.

On an annual basis, home prices rose 10.6 percent in March, the highest since April 2017, and also accelerating from a 10.4 percent gain in February.

Consumer and business confidence have slipped in recent quarters in the face of slowing economic activity.

However, pent-up demand for housing and some local governments relaxing purchase restrictions may be further fanning price gains in a market where fear of missing out is strong.

Home prices in China are expected to rise more this year than predicted just a few months ago, a recent poll showed, as the government urges banks to raise lending and lower interest rates to support the economy.

Medium to long-term new household loans, mostly mortgages, totaled 460.5 billion yuan (US$68.6 billion) in March, according to media calculations based on central bank data, up sharply from 222.6 billion yuan in the previous month.

Tier-three cities mainly led the firming streak in March. Home prices in those cities rose 0.7 percent from the preceding month, accelerating from 0.4 percent in February, the statistics bureau said in a statement accompanying the data.

The city of Dandong was the top price performer in the month, with prices increasing 1.9 percent on a monthly basis.

Price growth in China’s four top-tier cities — Beijing, Shanghai, Shenzhen and Guangzhou — rose 0.2 percent from a month earlier, slowing from a 0.3 percent gain in February. Prices in tier-two cities, which include most of the larger provincial capitals, increased 0.6 percent in March on a monthly basis, compared with a 0.7 percent gain previously.

(SD-Agencies)