Chinese new home prices are accelerating again


Chinese Chinese new home prices are accelerating again China monkey 300x169

Annual growth in Chinese new home prices continued to slow last
month, according to data released by China’s National Bureau of
Statistics (NBS) on Thursday.

But there’s already signs that prices may be starting to
accelerate again.

According to the NBS, prices across the nation grew by 10.7% in
April compared to a year earlier, down from the 11.3% level of
March and well off the cyclical peak of 12.6% seen in November
last year.

It was the slowest annual increase since August last year.

Chinese Chinese new home prices are accelerating again China new home prices April 2017 300x169

Of the major centres, prices rose by 16% in Beijing, 13.2% in
Shanghai and 6.6% in Shenzhen from a year earlier, down from 19%,
16.8% and 9.1% in March.

The deceleration in Shenzhen’s housing market, the buzzing
metropolis bordering Hong Kong in the nation’s south, has been
pronounced over the past year, slowing sharply from the 62.4%
gain recorded in the 12 months to April 2016.

Elsewhere prices rose by 17.3% in Tianjin, 21.6% in Guangzhou and
9.9% in Chongquing.

From a month earlier, prices grew by 0.7%, the fastest pace since
October last year. This continued the acceleration seen since
January when they grew by just 0.2%. Ever since they have
increased at a faster pace than a month earlier, something that
has come despite a renewed push by regulators to stymie rapid
price growth.

On that front it seems they’re having mixed success at present.

The NBS said that prices rose in 58 of the 70 cities monitored
down from 62 in March. Eight cities registered declines while the
remaining four and were unchanged.

Prices rose by 0.2% in Beijing, were flat in Shenzhen and down
0.1% in Shanghai.

According to calculations from Yan Yuejin, an analyst with
E-House China R&D Institute, prices in China’s tier-3 cities
— the smallest of those monitored by the NBS — grew 0.9% over
the month, accelerating on the 0.8% increase seen in March.

Elsewhere growth in tier-2 cities grew by 0.6%, unchanged from
the previous month, while those in tier-1 cities — the largest
of all those surveyed — grew by 0.3%, half the pace reported in

Prices for existing properties grew by 0.8%, according to
calculations from Reuters.

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