(Yicai Global) Sept. 15 -- Prices of second-hand homes in China did not change month on month in August for the first time this year, according to new figures from 70 large and mid-sized cities, amid ongoing local government measures to restrain house-price growth.

Prices in first-tier cities edged up 0.2 percent month on month, down from 0.4 percent in July, according to data released by the National Bureau of Statistics today. Second-tier cities logged no change from a 0.2 percent gain in July, while prices in third-tier cities fell 0.1 percent from July, the second monthly decline in a row.

Pre-owned house-price growth continued to narrow partly due to the introduction of official guide prices for such homes in many hotspot cities.

As of Aug. 31, 13 cities, including Shanghai, Shenzhen, Guangzhou, and Hefei, had published official guide prices or started checking the marketed prices of properties up for sale. The move has also expanded from first-tier cities to hotspot second- and third-tier cities.

According to policies issued by various local government, banks will only extend loans for second-hand properties based on the guide prices. In addition, since August the authorities have been rectifying market order and cracking down on high-priced school district housing.

According to statistics from the Centaline Property Research Center, local authorities had issued real estate-related regulation and control policies more than 68 times last month alone, adding up to a total of more than 420 times so far this year.

Forty-six of the 70 cities saw new home prices rise month on month in August, five fewer than the previous month in a third straight month of declines. Cities reporting month-on-month gains dropped to 27 from 41, the fewest this year.

New home prices in first-tier cities rose 0.3 percent month on month, less than the 0.4 percent posted a month earlier. In second-tier cities, prices inched up 0.2 percent from July, also down from 0.4 percent. Prices in third-tier cities were unchanged at 0.2 percent.

The changes in the second-hand housing market are bigger than that in the new home market, according to Xu Xiaole, chief analyst at Beike Research Institute. Firstly, guide prices and tightening bank loans have had a greater impact on the pre-owned home market. Secondly, downward expectations travel faster in that market.

Looking ahead, Xu said market expectations will continue to weaken, with the second-hand housing market’s prosperity index slipping to 23 in August, the lowest level since 2019. China’s real estate market will still be under downward pressure before the year is out, Xu noted.

Editor: Peter Thomas