China home prices fall in November

BEIJING, Dec 18 (Reuters): China's new home prices fell again in November and a business survey showed a deep drop in real estate investment plans, adding gloom to a slumping property market that has so far defied government efforts to revive it. Average home prices in 70 major Chinese cities fell by an annual 3.7 per cent last month following a 2.6 per cent fall in October, the biggest drop since 2011 and a threat to economic growth.
Yu Liang, president of leading residential developer China Vanke Co 000002.SZ said at the weekend that China now faced a housing glut that would take 13 months to clear.
Researcher China Beige Book said on Thursday its survey of 2,000 companies showed an eye-watering 26 percentage point fall in intentions to invest in real estate in the fourth quarter.
China's real estate market has been plagued by falling prices and high inventories in recent months, crimping demand in 40 economic sectors ranging from steel to cement to furniture.
The property price news followed data last week that showed factory growth and investment expansion slowing, leading to calls for more government stimulus measures and a cut in banks' reserve requirements - allowing them to lend more.