September new home prices up 0.4% m/m vs 0.6% uptick in August
September new home prices up 4.6% y/y vs 4.8% increase in August
55 out of 70 cities reported higher prices, vs 59 in August
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BEIJING, Oct 20 (Reuters) - New home prices in China grew at a slightly slower monthly pace in September, data showed on Tuesday, weighed down by tightening measures in some big cities to curb a potential market bubble.
Average new home prices in 70 major cities rose 0.4% in September from a month earlier, compared with a 0.6% increase in August, according to Reuters calculations based on data released by the National Bureau of Statistics.
On an annual basis, home prices rose 4.6% in September, the slowest pace since February 2016, and versus a 4.8% expansion in August.
The property market was among the first to recover from the pandemic, providing much-needed support to the broader economy. Real estate investment in China rose at the fastest pace in nearly 1-1/2 years in September.
But as China's recovery solidifies, the government is concerned about the spillover effect from high home prices on the rest of the economy. China's household leverage ratio soared to a record by the end of June, threatening to hobble private consumption which is critical to stimulate the pandemic-stricken economy.
Most of the 70 cities surveyed by the NBS reported monthly price increases for new homes, with the number down to 55 from 59 in August. Tier-3 cities reported the strongest monthly gains.
China's home prices are expected to rise 4.8% this year, a Reuters survey showed in late September, at a slower pace than last year, as Beijing shifts to deleverage the sector amid an economic recovery.
(Reporting by Liangping Gao, Lusha Zhang and Ryan Woo. Editing by Gerry Doyle and Ana Nicolaci da Costa)
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