China Home Price Growth Cools for Fourth Straight Month
By Kamen Parushev - Research Analyst
Home price growth in China slowed for the fourth consecutive month due to reduced demand in the biggest cities. Property price index for new dwellings declined 0.1% and 0.5% in Shanghai and Shenzhen, and remained flat in Beijing on a monthly basis, while price growth decelerated further on an annual basis. Compared with a year ago, home prices in China’s biggest cities Shenzhen, Shanghai and Beijing still rose 18.4%, 28.3% and 27%, respectively. House price growth reached its peak in September last year when year-on-year prices accelerated to 39.5% in Shanghai, 34.5% in Shenzhen and 30.4% in Beijing.
Cooling house prices suggest regulators are making progress in their attempt to defuse bubbles in the world’s second-largest economy. In October central government introduced new restrictions on property-related lending.
"We are aware that the property market faces many contradictions and problems in 2017, and there are increasing uncertainties, but I believe the positive aspects outweigh the negative ones and we have the ability and methods to stabilise the market," said China’s housing minister Chen Zhenggao (1).