Chinese home prices have finally stabilised after more than a year of price declines, according to China's National Bureau of Statistics

Chinese home prices have finally stabilised after more than a year of price declines, according to China's National Bureau of Statistics

According to calculations by Reuters, new home prices in 70 large cities were up by an average 0.1 per cent year-on-year, improving from a 0.9 per cent decline in September, a 2.3 per cent decline in August and a 3.7 per cent decline in July

In March and April they deflated at a record pace of 6.1 per cent, the biggest drop since the data series started in 2011

The positive figure reinforces a shift in asset allocation seen since the early summer, when China's equity market collapsed by two-fifths, sending investors back into the open arms of the property market

Month-to-month prices rose 0.2 per cent on average, a sixth straight gain

Top-tier cites continue to drive the improvement. In fact, of the 70 cities, prices rose in just 27 from the previous month, halting a trend that had seen gains for 39 cities in September, 35 in August and 31 in July

Home prices in Shanghai were up 10.9 per cent year-on-year, up from 8.3 per cent in September. In Beijing, prices were up 6.5 per cent, up from 4.7 per cent in September. Not to be outdone, home prices in Shenzhen were up 39.9 per cent, versus 37.6 per cent in September

Home prices have received a boost recently from a variety of policy measures. The People's Bank of China has cut benchmark interest rates six times in the last 12 months. Moreover, the down-payment ratio in the government-sponsored Housing Provident Fund was cut from 30 per cent to 20 per cent, on second-home purchases, in September

The minimum down-payment for first-time buyers was also cut from 30 to 25 per cent, the first such move in 5 years