New home price growth has slowed

China Daily European Weekly - - FRONT PAGE - By WANG YING wang_y­ing@chi­nadaily.com.cn

Rates de­cline slightly in Bei­jing, Shang­hai, Guangzhou and Shen­zhen in Fe­bru­ary

New home price growth slowed in Fe­bru­ary from the pre­vi­ous month in 70 ma­jor Chi­nese cities tracked by the Na­tional Bureau of Sta­tis­tics, as a se­ries of cool­ing mea­sures helped rein in prop­erty prices in big cities, even as smaller cities con­tin­ued to show re­silience.

Com­pared with Jan­uary, a to­tal of 16 cities re­ported de­clines in prices of new homes in Fe­bru­ary. Prices in 10 cities re­mained un­changed, while 44 recorded gains. The four first-tier cities of Bei­jing, Shang­hai, Guangzhou and Shen­zhen saw new home prices de­cline slightly, rang­ing from 0.2 to 0.6 per­cent­age point from a month ago, ac­cord­ing to NBS data pub­lished on March 19.

The sta­bi­lized res­i­den­tial prop­erty mar­ket is largely due to the cool­ing mea­sures en­acted by lo­cal gov­ern­ments and the con­ti­nu­ity of hous­ing poli­cies, says Liu Jian­wei, a se­nior statis­ti­cian at the NBS.

Zhang Dawei, chief an­a­lyst at Cen­taline Prop­erty Agency Ltd, says, “Among the 15 cities with harsh re­stric­tions, only Tian­jin re­ported a price rise (month-on-month), show­ing that the macro con­trol poli­cies in these cities have been ef­fec­tive.”

In Fe­bru­ary, new home prices in China’s first-tier cities de­clined by 0.1 per­cent year-on-year, while the used home price growth rate de­clined for the 17th month in a row, by 0.6 per­cent­age point from a month ago, ac­cord­ing to Liu.

In sec­ond-tier cities in­clud­ing Nan­jing, Hangzhou, He­fei and Fuzhou, the price growth rate for new homes edged down by 0.2 per­cent­age point month-on-month, while that for used homes grew by 0.1 per­cent­age point. On a year-on-year ba­sis, the new home price growth rate was 0.4 per­cent­age point, and that of used homes was 0.1 per­cent­age point.

Smaller cities showed re­silience in un­der­pin­ning home prices, and many of them re­ported growth in both new home and ex­ist­ing res­i­den­tial prices.

A to­tal of 44 cities out of the 70 ma­jor cities that the NBS mon­i­tored across the na­tion re­ported a mon­thon-month new home price rise in Fe­bru­ary, with Nan­chong, Sichuan prov­ince, tak­ing the lead with a 1.7 per­cent gain. Com­pared with last year, 59 cities re­ported price rises; in eight cities, the growth rate was above 10 per­cent.

Ex­perts say China will con­tinue its pur­suit of a sta­ble and healthy de­vel­op­ment of the prop­erty mar­ket this year.

“Tight­en­ing poli­cies for the res­i­den­tial mar­ket are spread­ing to third- and fourth-tier cities, as more than 40 cities have pub­lished over 50 macro con­trol poli­cies this year,” Zhang says.

Premier Li Ke­qiang an­nounced ear­lier this month that the coun­try is also steadily push­ing for the leg­is­la­tion of a prop­erty tax this year, which ex­perts ex­pect to be com­pleted by 2020.

PRO­VIDED TO CHINA DAILY

A model of hous­ing de­vel­op­ment at­tracts the at­ten­tion of vis­i­tors dur­ing a real es­tate expo in Hangzhou, cap­i­tal of Zhe­jiang prov­ince.

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