Chinese new home prices have fallen at a slower pace in May.
According to data provided by China’s National Bureau of Statistics prices slid by 5.7% in the 12 months to May, an improvement on the 6.1% contraction seen in April.
Prices in Beijing and Shanghai recorded annual declines of 2.3% apiece, up from 3.2% and 4.7% in April, while prices in Shenzhen leapt 7.5% from 0.7% reported previously.
As this excellent chart from Westpac’s Huw Mckay shows there is a clear divergence emerging between prices for new properties in China’s most-populous “tier-one cities” and those elsewhere in the country.
On a monthly basis the number of cities that saw prices increase continued to grow. Of the 70 cities surveyed 21 increased, up from 18 in April. In October last year all cities recorded price declines.