Tepid Hous­ing Mar­ket

Beijing Review - - This Week Economy -

China’s prop­erty mar­ket con­tin­ued to cool as home prices fal­tered or posted slower growth in ma­jor cities amid tough con­trol poli­cies, of­fi­cial data showed on Oc­to­ber 23.

On a yearly ba­sis, new res­i­den­tial hous­ing prices saw slower growth in 15 ma­jor cities in Septem­ber, com­pared with the same month last year, the Na­tional Bureau of Sta­tis­tics said. On a monthly ba­sis, new res­i­den­tial hous­ing prices fell or re­mained flat in those cities.

Both new and sec­ond-hand res­i­den­tial hous­ing prices in first­tier cities tum­bled 0.2 per­cent, com­pared with a month ear­lier, while new home prices in sec­ondtier cities climbed 0.2 per­cent month on month, on par with the growth in Au­gust.

In smaller third-tier cities, new and sec­ond-hand home prices went up 0.2 and 0.3 per­cent re­spec­tively, lower than the growth last month. It marked the 12th con­sec­u­tive month that both new and sec­ond-hand home prices in first-tier cities showed slowed growth from a year ear­lier.

The data pro­vide fresh ev­i­dence that China’s prop­erty mar­ket boom is run­ning out of steam as the gov­ern­ment con­tin­ues cool­ing mea­sures to squeeze out as­set bub­bles.

Since late last year, dozens of lo­cal gov­ern­ments have passed or ex­panded re­stric­tions on house pur­chases and in­creased the min­i­mum down pay­ment re­quired for a mort­gage.

The mar­ket was also cooled by rel­a­tively tight­ened liq­uid­ity con­di­tions as the gov­ern­ment moved to con­tain lever­age and risk in the fi­nan­cial sys­tem.

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