NEW home prices in China grew at their weakest pace in nearly a year in August as a cooling economy and existing curbs on speculative buying put a dent on overall demand.

Average new home prices in China’s 70 major cities rose 8.8 percent in August from a year earlier, compared with a 9.7 percent gain in July and the weakest pace since October 2018, media calculated from official National Bureau of Statistics (NBS) data yesterday.

On a monthly basis, average new home prices rose 0.5 percent in August, less than July’s growth of 0.6 percent and the smallest increase since February. However, it still marked the 52nd straight month of gains.

Most of the 70 cities surveyed by the NBS still reported monthly price increases for new homes, though the number was down to 55 from 60 in July.

China’s property investment grew at its fastest pace in four months in August, data showed Monday, in contrast to a protracted slowdown in industrial output and investment.

But some analysts said the rebound in investment was likely due to developers rushing to meet government requirements before they can start sales on growing financing pressure and worries about the market’s prospects as regulators have made clear that supervision is only set to tighten.

Price trends have been mixed lately, with some cities showing signs of rapid cooling while others are still plagued with overheating risks.

In August, softer prices were mainly in tier-2 cities, which include most of the larger provincial capitals.

Property prices there increased 0.5 percent on average on a monthly basis, easing from a 0.7 percent gain in the previous month, the statistics bureau said in a statement accompanying the data.

However, Nanning, the capital of Guangxi Zhuang Autonomous Region in southern China, was the top price performer in the month, with prices surging 2.3 percent on a monthly basis.

China’s four top-tier cities — Beijing, Shanghai, Shenzhen and Guangzhou — had an average gain of 0.3 percent from a month earlier, unchanged from July’s.

Out of the 70 major cities the government tracks, price growth in the smallest tier-3 cities rose the most on a monthly basis, though their increase of 0.7 percent was also in line with July’s pace.(SD-Agencies)