China Home Prices Slip for 2nd Straight Month

China’s home prices fell slightly in October for a second consecutive month as the central government’s price cooling measures take hold, said China Index Academy (CIA) Tuesday.

Average home prices in 100 major cities slipped 0.23% in October from September to 8,856 yuan ($1,396.85) per square meter, according to CIA, a Beijing-based property research firm. Month-on-month price declines were posted by 58 of the 100 last month. In 11 of those cities prices fell by over 1%. Prices were unchanged from September in two of the cities. In

The government will maintain its control over the real-estate market while seeking to fine tune other economic policies, said Premier Wen Jiabao Saturday.

Measures adopted to curb excessive home price increases include purchase restrictions in about 40 cities and boosting down-payment requirements.

Some developers, including the nation’s biggest developer China Vanke Co., have begun lowering prices in first- and second-tier cities to maintain sales volumes. In some developments prices fell by over 20 percent in October, according to the CIA report.