BEIJING - The number of unsold homes in China continued to drop last month, the latest sign that a national campaign to rebalance a saturated property market is effective.
The unsold housing stock in 100 Chinese cities declined 8 percent from a year ago to 426.43 million square meters at the end of June, according to a report by E-house China R&D Institute, a property research agency. The amount retreated to the level of more than six years ago.
The falls started in 2015 when the country decided to tackle a home-building frenzy.
Of all, 74 cities saw year-on-year falls in unsold real estate. Dalian, in northeastern China, reported the biggest decrease of 56 percent, followed by Hangzhou at 48 percent and Jinhua at 46 percent.
Data showed unsold home stock in those cities equalled total transactions of less than 10 months on average, which was lower than the reasonable level ranging from 12 to 16 months. That means the stock was relatively small, said Yan Yuejin, researcher with the institute.
The situation was attributed to robust home sales in third and fourth-tier cities, where governments stepped up efforts to reconstruct shanty towns and woo migrant workers to settle down as part of their urbanization drive.
The unsold home stock in 17 third and fourth-tier cities was equivalent to less than total sales for six months.
China's property market remained stable in the first half of the year as local authorities tightened regulations to prevent speculative home purchases.