Data from the National Bureau of Statistics showed that 54 of 70 large and medium-sized cities saw month-on-month price declines in new homes and 61 in September, up four and five from the previous month.

Among them, new home prices in first-tier cities decreased by 0.1% from the previous month. Prices of previously owned homes were flat month-on-month.

Prices of new and second-hand homes in second-tier cities fell 0.2 per cent and 0.3 per cent, respectively, the same rate of decline as the previous month.

Prices of new and second-hand homes in third-tier cities fell 0.4 per cent and 0.5 per cent, respectively, the same rate of decline as the previous month.

"In September, the price of new homes in 70 cities fell 0.28% month-on-month, basically unchanged from the previous month, and has been in decline for 13 consecutive months." Since July, as the capital chain continues to be tight, developers have cut prices to promote sales, and in September, the price of new homes has increased, and September maintained this trend." Guangdong provincial urban planning Institute housing policy research center chief researcher Li Yujia said.

For the phenomenon of new home prices in first-tier cities from rising to falling, Li Yujia said that after the growth of first-tier cities continued to narrow from July, there was a decline in September for the first time this year, mainly because of the decline in Guangzhou and Shenzhen, the formation of a drag, resulting in first-tier cities from rising to falling.

Among first-tier cities in September, new home prices in Beijing and Shanghai rose 0.2 per cent month-on-month, while those in Guangzhou and Shenzhen fell 0.3 per cent and 0.5 per cent, according to the National Bureau of Statistics.

From a year-on-year point of view, among the 70 large and medium-sized cities, the prices of new homes and second-hand homes fell in 50 and 63 cities, respectively, an increase of 1 and 2 over the previous month.

Among them, new home prices in first-tier cities rose 2.7% year-on-year, 0.1 percentage points lower than the previous month; Second-hand housing prices rose 1.2% year-on-year, 0.4 percentage points higher than the previous month.

The prices of new homes and second-hand homes in second-tier cities fell by 1.2% and 3.0%, respectively, 0.2 percentage points higher than the previous month.

Li Yujia pointed out that from a year-on-year point of view, new homes in 70 cities fell 2.3% in September, falling for 6 consecutive months, and the decline continued to expand, among which the first-tier cities continued to narrow to 2.7%, from June last year, the increase continued to narrow for 15 months, while the second and third-tier cities continued to fall, and the decline continued to expand.

However, Zhang Dawei, chief analyst of Centaline Real Estate, believes that most of the favorable policies were released at the end of September, so the downward trend of the market in September is expected to gradually improve in October.

In terms of month-on-month growth in new home prices, Hefei and Chengdu both rose 0.7%, ranking first; Hangzhou and Dali both gained 0.4%, ranking second; Nanchang, Jinan and Chongqing all gained 0.3 percent, ranking third.

From the point of view of the second-hand housing price increase, Shanghai rose 0.5%, ranking first; Beijing ranked second, up 0.4 percent. Chengdu and Kunming both gained 0.3 percent, ranking third.

Yan Yuejin, research director of the think tank center of the E-House Research Institute, pointed out that cities with relatively strong housing price rises are generally cities with good economic fundamentals.

It is worth noting that at the end of September, the People's Bank of China, the Banking and Insurance Regulatory Commission and the Ministry of Finance successively issued a combination of policies such as easing the lower limit of mortgage interest rates, decreasing the interest rate of provident fund loans, and reducing and reducing the personal income tax for replacement purchases in two days. According to incomplete statistics, at present, more than 10 cities have entered the "3 era" of commercial loan interest rates for the first suite, and more than 30 cities have lowered housing provident fund loan interest rates.

Chen Wenjing, director of market research at the Index Division of the Middle Finger Institute, believes that a series of positive policy signals released at the end of September will help drive the release of housing demand. At the same time, because the policy is limited to the end of 2022, and the policy window is concentrated in the fourth quarter of this year, it is expected that more cities will adjust the first suite commercial loan interest rate in combination with their own conditions, which will have a guiding effect and drive the overall market expected to recover.

Guosheng Securities Research Report also believes that the recent central intensive "top-down" relaxation of real estate policy has further increased the expectation of future policy relaxation, and continues to be optimistic about the next policy relaxation space, especially the purchase and loan restriction policy of the first and second-tier core cities.

Cinda Securities research report pointed out that the reduction of the down payment ratio and other regulatory methods for demand stimulus will be more intuitive, with the use of this round of policy toolbox, the future loosening policy is expected to continue to follow up nationwide, Including the adjustment of other transaction taxes in addition to personal income tax, the national recognition of loans and housing, and the identification and adjustment of the down payment ratio (the first set and two sets) are expected to be introduced one after another.

Ping An Securities research report believes that under the policy spring breeze, the second-hand housing market has taken the lead in October to warm up, and the number of weekly transactions hit a new high in the year. The direction of short-term policy improvement has not changed, and with the gradual accumulation of policy effects, the new home market in the fourth quarter is expected to gradually repair.

Article source: Brokerage China