(Yicai Global) Feb. 21 -- The price of a newly built residential property in China’s first and second-tier cities ticked up last month from the month before, after slumping in the fourth quarter last year, as an easing in mortgage lending and other supportive policies take effect, according to the latest figures.

New housing prices in the four first-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen rose by an average of 0.6 percent in January from the month before, turning around December’s decline of 0.1 percent, according to data released by the National Bureau of Statistics today.

Beijing was leader of the pack with a 1 percent rise, followed by Shanghai at 0.6 percent, Guangzhou at 0.5 percent and Shenzhen at 0.5 percent, the NBS said.

In second-tier cities, there was an average uptick of 0.1 percent, as opposed to a 0.3 percent fall last December, the report said. Yinchuan in the Ningxia Hui Autonomous Region had the biggest increase at 1.5 percent, followed by Chengdu in southwestern Sichuan province at 1 percent.

However, in third-tier cities prices continued to slide, dropping 0.2 percent from December, but less than December’s 0.3 percent fall from November.

Of the 70 cities polled, 28 saw new home prices increase, 13 more than in December. This is still fewer than the average number during the first three quarters last year.

The positive signal given by national housing prices in January indicates that the adjustment in the credit environment, such as the acceleration of mortgage applications, and other supporting policies implemented since the fourth quarter last year are taking effect, Yan Yuejin, research director of E-House China R&D Institute, told Yicai Global. The excessive decline in property prices in some areas has been curbed and the fundamentals are expected to continue to improve.

The new housing market has rebounded significantly faster than the pre-owned housing market, said Li Yujia, chief researcher at the Guangdong Housing Policy Research Center. This is because new houses are selling at a price advantage over second-hand homes as developers are eager to get their money back.

The price of a pre-owned home in first-tier cities rose 0.1 percent in January month-on-month, the same rate as in December, the NBS said. In second-tier cities, they fell 0.2 percent, less than December’s drop of 0.3 percent. And in third-tier cities they decreased 0.4 percent, a narrowing of December’s decline by 0.1 percentage point.

Editor: Kim Taylor