China’s new home prices fell by 0.2% in October

The country’s property market has deepened as new home prices saw the biggest fall since 2015 

Official data has revealed that China’s property slump has deepened, with new home prices seeing their biggest month-on-month decline since 2015, reported BBC.  

Compared to 2020, new construction starting from January to October also dropped by 7.7 percent.  

Due to the recent Evergrande crisis, along with a new wave of COVID-19 cases and major power cuts, the country’s property market has been shaken up.  

In October, new home prices fell by 0.2 percent, the biggest decline experienced in China since February 2015. It is also the first decline in new home prices since March 2015.  

Following the Evergrande issue, China’s real estate industry has come under intense scrutiny as fears continue over the future of companies. 

The debt crisis could also majorly impact global financial markets, triggering concerns among some international investors.  

More: News of higher property tax in China alert multiple-home owners

However, numerous high-profile figures have moved to help calm distress in recent weeks. Haruhiko Kuroda, the governor of the Bank of Japan said that he believed that China’s property problems were unlikely to trigger a global shock as debt outside the country was relatively low.  

“We don’t expect China’s property woes to have a big impact on Japan’s economy or financial institutions. We also don’t see a huge risk of the woes triggering a big, global shock,” Kuroda told business leaders in the city of Nagoya, central Japan.