China's real estate sector showed signs of warming in November as new home prices rose on a monthly basis in an increasing number of cities, buoyed by government policies.
Of 70 large and medium-sized cities surveyed in November, new home prices climbed month on month in 33, up from 27 in the previous month, the National Bureau of Statistics (NBS) said on Friday.
Twenty-seven reported month-on-month price declines, down from 33 in October.
On a yearly basis, 21 cities posted new home price increases, up from October's 16.
New home prices surged 44.6 percent year on year in Shenzhen, the sharpest increase among China's major cities.
Prices for existing homes remained weak in November, but they were still stronger than in October as 16 cities reported month-on-month declines, down from 23 in October. Prices increased in 40 cities, compared with 38 in the previous month.
"The home price rises show policy effects have sunk in," said NBS statistician Liu Jianwei.
Home prices rises in top-tier and second-tier cities were greater month on month in November, while prices held steady in third-tier cities.
China's housing market took a downturn in 2014 due to weak demand and a supply glut. The cooling has continued into 2015, with both sales and prices falling and investment slowing.
To combat the market weakness and a broader economic slowdown, China's central bank has cut benchmark interest rates five times since last November and lowered banks' reserve requirement ratio three times since February.
The country also lowered down payment requirements for second-home purchases and some local governments have rolled back restrictions on home purchases.
Thanks to the measures, the housing sector saw recovery in summer and autumn with improving home prices.
"Home prices hinge more on China's monetary policy and interest rate adjustments than the Fed's, given only a small amount of international capital has been bet on the market," said Yang Hongxu, deputy head of property market researcher E-house China R&D Institute, playing down the impact of Wednesday's U.S. rate increase.
Facing a subdued economic growth, China will loosen its monetary policy in 2016, according to Yang, forecasting another interest rate cut next year.
That will provide more room for property market growth, the researcher said. Moreover, a weakening yuan will boost China's exports and stabilize the economy, which will help raise demand in the home market.
China's top leaders attach great significance to the real estate sector, one of the pillar industries, with a focus on reducing the huge inventory.
The unsold home inventory hit a record 686.3 million square meters at the end of October.
In addition to financial stimulus policies, the government is pushing for bolder reform to the household registration system to allow more rural people settling in small and medium-sized cities, hence driving up property demand.
