China’s National Bureau of Statistics (NBS) says that in the month of February new home prices fell in 45 out of 70 cities that the agency monitors.
Only 4 cities recorded a rise prices while 21 of them stayed the same.
On the annual basis, 27 cities recorded lower prices now then a year ago. This is an increase from 15 cities in January.
An analyst with Beijing-based Homelink Property says that the downward trend will continue as developers, seeking exit from positions, will lower prices to liquidate.
“Many developers in China may be at an increased risk of refinancing because of weaker property sales, high funding costs and tightened liquidity,” said Bei Fu, a credit analyst at Standard & Poor’s.