Chinese property market set to cool

CHINA’S property market was expected to cool in the fourth quarter as real estate investment growth faltered, monthly property sales value dropped and home prices declined in hotspot cities, economists said.

The property market remained stable last month, with new residential housing prices seeing slower growth year-onyear in 13 of the 15 major cities considered the hottest markets the National Bureau of Statistics (NBS) data showed.

“The investment and speculation fever in the country’s property market has been dampened this year by a new round of cooling measures,” said Yan Yuejin, a senior researcher with E-house China R&D Institute.

In the first 10 months, property investment rose 7.8 percent from a year earlier, compared with 8.1 percent in the January-September period.

The figure focuses largely on residential real estate but also includes commercial and office space.

“Given there is little room for home prices in the 70 large and medium-sized cities surveyed to rise, price growth on a yearly basis is expected to stay on a downward track,” said Yan.

Last month, home prices in the biggest cities softened and gains in smaller cities slowed, the NBS data showed.

“It is the first time since 2016 that home prices in 10 hotspot cities witnessed yearon-year drops in October, in contrast with only three cities in September. The home-buying fever has been cooled in hotspot cities amid tough government curbs,” said Zhang Dawei, a Centaline Property analyst.

Sales decline Sales by value fell 1.7 percent year on year in October, compared with a 1.6 percent gain in September, the first decline in monthly property sales value since March 2015, according to the NBS data.

On a yearly basis, new and second-hand home prices in first-tier cities reported slower growth for the 13th consecutive month last month.

New home prices in smaller second- and third-tier cities also witnessed continuous year-on-year drops.

“Twenty of the 70 large and medium-sized cities saw second-hand home-price declines last month, seven cities more than in September. The declining trend has maintained for months, showing an overall cooling property market,” said Yang Hongxu, the deputy head of E-house China R&D Institute.