House prices fall in China's major cities

Property prices in China's first-tier cities declined 0.41% in August 2011, the first month-on-month drop since September 2010, according to statistics released on 1st September 2011.

The average property price in China's 10 major cities stood at RMB15,773 (US$2,472) per square metre last month, down 0.41% from July. Though prices continue to rise in three of the 10 cities - Guangzhou, Wuhan and Beijing - the rate of increase is less than 0.6%

The Chinese Government has launched a series of measures to curb property price gains since the end of last year, such as raising downpayments requirements and mortgage rates for second-home buyers, and restricting the amount of homes a family may purchase. Last month, the government said it will rein in residential prices in second and third-tier cities by expanding home purchase restrictions from the major cities to the smaller ones.

(Source: Weber Shandwick Daily China News Brief - 2nd September 2011)