(Yicai Global) Oct. 21 -- Home prices in 12 Chinese cities fell last month, the most this year, while prices stayed unchanged in five and rose in 53, data for 70 large and medium cities the country's statistics bureau released today show.

These figures do not tell the whole story, however, as, in contrast to previous direct price reductions, most sellers this year have used 'hidden cuts,' such as gifting extra space, parking spots, deluxe decor, reducing property fees and granting other freebies as deal sweeteners, 21st Century Business Herald cited market analysts as stating.

Actual sales prices have thus not declined. On the contrary, as these measures have stimulated market demand, the transaction volume has in fact risen substantially, which in turn has stimulated price rebounds that the raw data fails to reflect.

Second-hand housing stickers fell in 28 cities. Data on second-hand homes reflects the actual market situation better than the figures for new housing. Used homes cost more in 40 cities, while newly-built ones appreciated in only 53 in the lowest average reading in the last two years. New house prices previously fell in nearly 45 cities at the end of 2017.

Four first-tier cities logged 0.4 of a percent new commercial home price increases, up by 0.1 of a percentage point on the month before. Of these, Beijing and Guangzhou held steady, while Shanghai and Shenzhen climbed 0.5 percent and 1.2 percent, respectively. Used homes scaled up 0.3 percent, flat from the previous month overall, but Beijing and Shenzhen lost 0.5 percent and 0.3 percent, respectively, whereas Shanghai and Shenzhen added 0.6 percent and 1.3 percent.

The prices of new commercial residences went up in 31 second-tier cities. Second-hand homes climbed 0.2 percent on the month.

The national commercial housing sales area was 173.3 million square meters last month, according to previous figures by the National Bureau of Statistics, with sales of CNY1.11 trillion, up 32.6 percent and 32 percent, respectively, from August.

Editor: Ben Armour