China’s home prices remain stable in November

2017-12-18
Xinhua

BEIJING — China’s property market held broadly steady in November with home prices edging down in major cities amid tough purchase restrictions and a tight liquidity environment, the National Bureau of Statistics (NBS) said on Dec 18.

New residential house prices went down on a yearly basis in 11 of the 15 major cities, considered the “hottest markets.” On a month-on-month basis, new residential housing prices fell in 7 of the 15 cities, while Beijing, Shanghai, Zhengzhou and Wuhan saw prices flat with October.

NBS statistician Liu Jianwei said that housing prices stayed generally stable in major cities as differentiated control policies continued to take effect.

In first-tier cities where the curbs are strictest, home prices continued to soften, with new residential housing and secondhand home prices down 0.1 percent and 0.2 percent, respectively, from a month earlier.

In contrast, the property market in second- and third-tier cities is showing signs of picking up, with new residential housing prices gaining 0.5 percent and 0.4 percent, respectively, from October.

The data provides evidence that government cooling measures to prevent asset bubbles in the property market are producing the desired outcomes.

Since late last year, dozens of local governments have passed or expanded restrictions on house purchases and increased the minimum down payment required for mortgages.

The property market was also cooled by relatively tightened liquidity conditions as the government moved to contain leverage and risk in the financial system.

Chinese authorities have constantly reiterated that “houses are built for living in, not speculation,” pledging to step up housing system reform and foster a long-term market mechanism.