Housing inventories hit 5-year high: report   

(ECNS) – Housing inventories of 35 Chinese cities broke a five-year record in September, and first-tier cities were hit hardest, according to a report by E-House China R&D Institute released Monday.

The report shows that in September, inventories of new homes in 35 cities totaled 280.13 million square meters, a 4 percent monthly increase and 23.8 percent rise year-on-year.

The majority of the cities saw yearly inventory increases. The housing inventory in Nanchang, capital city of Jiangxi province, had a 99.3 percent rise.

Four first-tier cities, Beijing, Shanghai, Guangzhou and Shenzhen, suffered the most inventory stress. None of them have removed their home purchase curbs, and due to relatively sluggish sales, their housing inventories have been hiking for eight consecutive months. By the end of September, the four cities' inventories reached 37.94 million square meters, a year-on-year increase of 39.6 percent.

E-House analyst Yan Yuejin said the possibility of stimulus measures can't be ruled out in the fourth quarter given the high inventories in big cities.

Yan said second-tier cities may further lower housing prices in October as inventories remain high.