Why China’s housing market remains weak despite new government support measures

China’s new home prices extended their decline in August, highlighting the continuing weakness in the country’s prolonged property downturn and its impact on the broader economy.New home prices fell 0.1% in August from July, matching the monthly decline recorded in both June and July, according to Reuters calculations based on data released by the National Bureau of Statistics.On an annual basis, new home prices fell 3.0% in August, narrowing from a 3.2% decline in July. It was the slowest pace of annual decline recorded this year.Tier-one cities show signs of stabilisationThe latest data showed a mixed picture across China’s property market, with major cities performing better than smaller markets.New home prices in tier-one cities rose 0.1% in August from the previous month, reversing a decline in July.