Home Prices Stable

The hot property market in major cities is stabilizing after authorities took measures to contain rising prices, according to an official survey on February 22.

Of the 70 large and mediumsized cities surveyed, 45 saw prices for new residential housing climb month on month in January, down from 46 in December and 55 in November 2016, according to the National Bureau of Statistics (NBS).

In Beijing, new residential house prices remained flat month on month, while Shanghai prices fell 0.1 percent. Housing prices in Shenzhen, a southern metropolis neighboring Hong Kong, slid 0.5 percent.

Year on year, housing prices in the three cities have risen 24.7 percent, 23.8 percent and 18.2 percent, respectively.

According to the NBS, new residential housing prices in second-tier cities rose 0.1 percent on a monthly basis, retreating 0.1 percentage point from the growth seen in December.

Third-tier cities saw new residential house prices gain 0.4 percent month on month, the same as the increase in December 2016.

“Monthly growth in 15 first-tier and major second-tier cities has slowed down and home prices have stabilized as local governments’ tightening measures have taken effect,” NBS statistician Liu Jianwei said.

Since October last year, dozens of cities have announced measures, including purchase limits and tightened mortgage restrictions, to prevent prices from rising out of control.

The latest round of property restrictions came after two years of progressive policy easing, starting with the relaxation of purchase restrictions in 2014. The momentum was fueled by the government’s pro-growth policies, including interest rate cuts and lower deposit requirements.