(Yicai) Nov. 16 -- House prices in major Chinese cities fell last month from September due to price cuts and promotions over the National Day holiday. 

New home prices dropped in 56 of 70 cities in October, according to data released today by the National Bureau of Statistics. Second-hand home prices fell in 67 cities, with just Xi’an in Shaanxi province and Hangzhou in Zhejiang showing growth.

In first-tier cities, new homes got 0.3 percent more affordable, whereas prices were unchanged the month before, and pre-owned property prices fell 0.8 percent, versus a rise of 0.2 percent in September.

In second-tier cities, new builds and lived-in homes slid by 0.2 percent and 0.5 percent, respectively. Third-tier cities logged a 0.5 percent decrease in new home prices and a 0.6 percent decline in pre-owned housing prices.

Many people traveled over the National Day holiday in early October, resulting in a drop in home-buying sentiment so developers offered steeper discounts, China Real Estate Business reported today, citing Li Yujia, chief researcher at the housing policy center of the Guangdong Urban and Rural Planning and Design Institute. 

As the supply of new and pre-owned homes increased, prices fell overall and failed to continue September’s positive trend, Li added.

In the remaining weeks of this year, the real estate market will remain lackluster as it was in October, and developers will offer more discounts and promotions to alleviate financial pressure and bolster their annual performance, Li said, adding that prices are expected to remain subdued later this year.

Based on annual comparisons, 47 of 70 cities saw new home prices fall in October from a year earlier, two more than in the previous month. Pre-owned property got cheaper in 67 cities, unchanged from September.

In first-tier cities, new home prices rose 0.4 percent year on year in October, while second-hand prices fell 1.9 percent. In second-tier cities, new-build prices climbed by 0.3 percent from a year ago, while second-hand home prices dropped 3.3 percent. In third-tier cities, new and lived-in home prices fell 1.5 percent and 3.6 percent, respectively.

More than 77.7 million square meters of residential property was sold in China last month, down 28 percent from the prior month. Deals tumbled 26 percent to CNY809.1 billion (USD111.7 billion). The comparable figures in September, jumped 47 percent and 42 percent, respectively.

Editor: Emmi Laine