House mar­ket cool­ing in big ci­ties

China Daily (Canada) - - VIEWS - ByWUYIYAO in Shang­hai wuyiyao@chi­andaily.com.cn

Prices of newhomes in most of China’s first-tier ci­ties de­clined in De­cem­ber, show­ing that poli­cies to mod­er­ate hous­ing prices tai­lored to lo­cal con­di­tions have been ef­fec­tive, said the Na­tional Bureau of Statis­tics.

All first-tier ci­ties apart from Guangzhou recorded lower av­er­age prices for new homes in De­cem­ber, ac­cord­ing to NBS data, and av­er­age prices of all first­tier ci­ties recorded zero month-on-month growth, show­ing that the fast rise of hous­ing prices in ma­jor ci­ties has been curbed, said the NBS, which tracks home prices in 70 ci­ties across China.

In Shang­hai, one of the hottest home mar­kets, new home prices went down month-on­month for two con­sec­u­tive months.

“It is partly be­cause more new homes are now of­fered only in sub­ur­ban ar­eas, which af­fects the av­er­age prices of prop­er­ties. The price trend and trans­ac­tion vol­ume recorded in the last quar­ter of 2016 in­deed showed that spec­u­la­tive de­mand has been squeezed out of the mar­ket,” said Zhou Jing, an an­a­lyst with JLLChina, real es­tate ser­vices provider.

In se­cond-tier ci­ties, new home prices went up 0.2 per­cent month-on-month in De­cem­ber, lower than the 0.4 per­cent in Novem­ber.

Liu Jian­wei, a se­nior statis­ti­cian with the NBS, said the new home prices show that the real es­tate mar­ket has shown “pos­i­tive changes” fol­low­ing the in­tro­duc­tion of city-spe­cific res­i­den­tial prop­erty mar­ket poli­cies. Home price trends in first- and se­cond-tier ci­ties are sta­ble.

“New home prices in thirdtier ci­ties rose slightly over­all, but the res­i­den­tial prop­erty mar­ket re­mains sta­ble,” he said.

The av­er­age prices in thirdtier ci­ties rose 0.4 per­cent month-on-month in De­cem­ber, lower than 0.8 per­cent in Novem­ber.

The gov­ern­ment has made it clear that hous­ing is for liv­ing, not for spec­u­la­tion, and has pledged a pru­dent and neu­tral mon­e­tary pol­icy and mea­sures to de­flate as­set bub­bles.

For home­buy­ers, the cur­rent prices in cen­tral lo­ca­tions in key ci­ties are still un­af­ford­able.

“It is un­likely I could af­ford an apart­ment in an ur­ban area, but as a sin­gle man I don’t ac­tu­ally need a spa­cious house. When my in­come grows, per­haps get mar­ried and have a fam­ily, I will be think­ing of buy­ing a home then,” said Huang Weiyi, 24-year-old au­di­tor in Shang­hai.

New home prices in third-tier ci­ties rose slightly over­all ...”

PRO­VIDED TO CHINA DAILY

A child plays be­side a model of a huge res­i­den­tial prop­erty project in Shang­hai.

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