Home sales grow 16 per­cent in Novem­ber, slow­est pace in 2016

China Daily (Hong Kong) - - BUSINESS - By BLOOMBERG

China’s home sales grew at the slow­est pace this year in Novem­ber, as re­newed prop­erty curbs in red-hot mar­kets hurt de­mand.

The value of new homes sold rose 16 per­cent to 910 bil­lion yuan ($132 bil­lion) last month from a year ear­lier, ac­cord­ing to Bloomberg cal­cu­la­tions based on data the Na­tional Bureau of Sta­tis­tics re­leased on Tues­day. The in­crease com­pares with a 38 per­cent year-on-year gain the pre­vi­ous month.

Shang­hai, which in­tro­duced re­stric­tions in March, last month i ncreased t he down-pay­ment thresh­old for first-home pur­chasers from 30 per­cent to as much as 70 per­cent if they have mort­gage loan record, deal­ing a blow to pur­chasers seek­ing to buy more ex­pen­sive homes. Tian­jin raised min­i­mum down-pay­ment re­quire­ments for first-time buy­ers by 5 per­cent­age points, while east­ern Hangzhou ruled more non­lo­cal buy­ers in­el­i­gi­ble, on top of curbs re­leased re­cently.

“Pol­icy mak­ers have achieved their ear­lier tar­get of a sta­bi­lized prop­erty mar­ket, and an­other round of in­ten­sive tight­en­ing may not be seen quickly,” Zhao Yang, chief China econ­o­mist at No­mura Hold­ings Inc, said in a con­fer­ence call on Mon­day. Even so, the cool­ing mar­ket may trans­late into plung­ing home prices, and po­ten­tially hurt real es­tate in­vest­ment by a larger amount than ex­pected, Zhao added.

In­vest­ment in real es­tate de­vel­op­ment gained 5.7 per­cent last month in the slow­est year-on-year in­crease in four months, ac­cord­ing to Bloomberg cal­cu­la­tions based on of­fi­cial data. New prop­erty starts, a lead­ing in­di­ca­tor of in­vest­ment, in­creased 3.3 per­cent, con­tract­ing from a 20 per­cent gain in Oc­to­ber.

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