China Home Prices Fall at Slower Pace as Stimulus Takes Hold

China’s decline in home prices abated for a fourth month in December, reflecting signs of market stabilization after the government’s latest stimulus blitz.

New home prices in 70 cities, excluding state-subsidized housing, dropped 0.08 percent from November, the smallest decline in a year and a half, National Bureau of Statistics figures showed Friday. Existing home values slid 0.31 percent, easing from a 0.35 percent drop a month earlier.

The figures suggest property values are beginning to steady as policymakers step up efforts to end the housing slump that has weighed on Asia’s largest economy for more than three years. The downturn has wiped out billions of dollars in household wealth and added to deflationary pressures.

“The mounting policy support has warmed up homebuyer sentiment,” said Liu Shui, an analyst at China Index Holdings. “However, the broader home-market recovery still faces mounting challenges this year.”

Improvements were seen on a year-on-year basis too, with new-home prices falling 5.73 percent versus 6.07 percent a month earlier. Used-home values dropped 8.11 percent compared with 8.54 percent in November.

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