Prices fall for fourth month in monthly and annual terms
More cities record monthly price decline

BEIJING, Nov 16 Reuters China39;s new home prices fell for the fourth straight month with dozens of cities hit by declines, the most since the peak of the COVID19 pandemic last year, suggesting a broader weakening in the sector that could drag on the country39;s overall recovery.

New home prices in October dropped 0.3 monthonmonth after a 0.2 dip in September, according to Reuters calculations based on National Bureau of Statistics NBS data.

Once a key engine of economic growth accounting for around a quarter of China39;s economic activity, a regulatory crackdown since 2020 to curb debt has tightened liquidity and raised default risks for developers, delaying many projects.

Authorities have rolled out a flurry of measures to prop up the pivotal sector, including relaxing curbs on home purchases and cutting borrowing costs but homebuyers remain cautious.

The most important reason for the bearish home prices is that demand is weak, buyers don39;t know if presold homes they buy will be delivered on the dates promised by the developers, said Ma Hong, senior analyst at Zhixin Investment Research Institute.

Nomura estimated there are around 20 million presold units that are either not yet constructed or delayed. That is equivalent to 20 times the number of unfinished projects by indebted developer Country Garden as of end2022.

Bearish home prices follow data on Wednesday…