China's new home prices rise for third month despite property crisis

China's new home prices rose slightly for a third straight month in November, a private survey showed, as the crisis-hit property sector struggles to stabilise despite a slew of government support measures.

Prices rose 0.05 percent on average from the previous month after gains of 0.07 percent and 0.05 percent, according to the survey by real estate research firm China Index Academy.

Only 38 of the 100 cities surveyed reported increases in new home prices.

China's property sector, which makes up about one-quarter of the world's second-biggest economy, has stumbled from crisis to crisis in a major blow to consumer and investor confidence, keeping economic growth from resuming a solid footing this year.

Government support for the property sector in recent months has included easing curbs on home purchases and cutting mortgage costs.

Clear policy direction

China Index Academy said in a report that the policy direction for the national property market was clear, and support from the supply and demand sides was expected to continue until the market shows recovery.

A Reuters poll on Wednesday found that the expectations for 1 percent growth in new home prices next year, were little changed from an August poll.

"Beijing is turning more proactive to stabilise growth and the new dual-track housing model may help stabilise the property sector in the coming quarters," HSBC said on Thursday.

"This includes making affordable housing accessible and allowing the commercial real estate to return to its commercial nature, i.e., it could be for living or for speculation."