Chinese new home price growth cools in November

Marco Green
December 19, 2017

The average price of new homes in 70 cities rose 0.4% in November from October, excluding government-subsidized housing, according to calculations from The Wall Street Journal based on data released Monday by the National Bureau of Statistics.

A commercial housing area for sale in Shanghai.

Smaller third- and second-tier cities accounted for the rise, while first-tier cities recorded a drop of about 0.1%. The year on year gain of 5.1% was a touch slower than October's 5.4% YOY rise.

The data provides evidence that government cooling measures to prevent asset bubbles in the property market are producing the desired outcomes.

The divergence reflects government efforts to stymie speculation in China's largest property markets through the introduction of restrictions on lending, buying and selling houses that were gradually rolled out from late 2016.

Chinese authorities have constantly reiterated that "houses are built for living in, not speculation", pledging to step up housing system reform and foster a long-term market mechanism. That compared with a 0.3% on-month gain in October.

While monthly price rises peaked in September past year at 2.1 per cent nationwide, they have softened only slowly, regaining momentum as buyers shrugged off each new measure to curb speculation.

The NBS said they rose in 50 of 70 cities monitored, unchanged from the level repprted in October.

While market watchers do not anticipate significant price declines or a crash, weakness in property investment and construction would drag on broader economic growth.

Other reports by Click Lancashire

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