Home prices stabilizing in many Chinese cities

Fewer chinese cities saw home prices fall last month as demand was boosted by two interest rate cuts and removal of property curbs since last November. Prices in 66 cities slid in February but last month saw signs of improvements: the prices only dropped for 49 cities out of 70 from datas obtained from the National Bureau of Statistics. The average price fell for an 11th consecutive month bringing the decline to 6.1 percent. At the end of last month, the People's bank of China lowered the minimum down payment required of second home buyers who are still repaying their first mortgage to 40 percent, from 60 percent. There were also exemptions from a 5.5 percent sales tax if they sell after two years - down from five years previously. The central bank began last year to reverse its tightening policy.

Source: Bloomberg