Second-Third Tier House Prices Down In April

China’s two- and three-tier cities need further measures to boost confidence in the housing market, as prices decline in April, according to analysts interviewed by the Securities Daily. One analyst noted April’s data showed first-tier cities had maintained upward momentum from Q1, but second- and third-tier cities had slowed. Prices of new builds in tier-one cities increased by 2% y/y, a 0.3pp m/m gain, while second-hand properties were up 0.9% y/y, down 0.2pp m/m. Prices in some major tier-two cities increased, with Chongqing, Haikou and Wuhan all showing expansion for new builds, but declines for second-hand homes. Only Chengdu increased prices in both categories. (Source: Securities Daily)