Home prices continue to rise in Oct

Potential homebuyers examine a property project model in Shanghai, May 2, 2014. [Asianewsphoto by Yan Daming]

BEIJING - October's new home prices increased both on a yearly and monthly basis for the third-consecutive month, a survey showed on Sunday.

The average price per square meter in a sample of 100 cities rose 0.3 percent month on month to 10,849 yuan ($1,709) in October, according to the survey by the China Index Academy, an independent research institute.

The gain slightly expanded from 0.28 percent in September, according to the academy.

In October, 48 sample cities registered month-on-month home price increases, 11 less than in September.

On a yearly basis, the average price per square meter in the 100 sample cities rose 2.07 percent in October, 0.71 percentage points more than in September.

New home sales in China's 10 major cities -- including Beijing and Shanghai -- surged 6.65 percent year on year in October, 1.01 percentage points more than in September.

Of the tier-one cities, Shenzhen witnessed the strongest growth last month with 32.66 percent compared with a year earlier, the report said.

China's housing market took a downturn in 2014 due to weak demand and a surplus of unsold homes. The cooling has continued into 2015, with both sales and prices falling and investment slowing.

To combat the slowdown, the central bank has cut the benchmark interest rates six times in nearly 11 months and lowered banks' reserve requirement ratio five times in nearly nine months.

Deposit requirements were also reduced for second-home purchases, and some local governments have rolled back other residential purchase restrictions.

China's banking and housing regulators slashed deposit requirements for second home purchases to 20 percent from 30 percent in late August, providing buyers have no other outstanding mortgages.