Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

China new home price growth slows in July - private survey

Published 08/01/2021, 12:59 AM
Updated 08/01/2021, 01:00 AM
© Reuters. FILE PHOTO: A woman rides a tricycle carrying a child near a residential compound in Beijing's Tongzhou district, China, February 25, 2016. REUTERS/Jason Lee

© Reuters. FILE PHOTO: A woman rides a tricycle carrying a child near a residential compound in Beijing's Tongzhou district, China, February 25, 2016. REUTERS/Jason Lee

BEIJING (Reuters) - China's growth in new home prices slowed in July for the first time in five months, with smaller cities especially weighed down by higher mortgage rates, price caps on resale homes and other steps to cool speculation, a private-sector survey showed on Sunday.

New home prices in 100 cities rose 0.35% in July from a month earlier, versus 0.36% growth in June, according to data from China Index Academy, one of the country's largest independent real estate research firms.

This year Chinese authorities have implemented measures to rein in the red-hot real estate market, including caps on developers' borrowing and strict bans on illegal flows of funds into the sector.

"New home growth softened in July against the backdrop of stringent measures and tighter credit", said the group's director, Cao Jingjing.

Growth in home sales is expected to remain mild as the curbs are unlikely to be eased, the survey said.

In July, China's housing ministry urged five cities including the eastern city of Jinhua and the southeastern city of Quanzhou to stabilise their property markets, while the central bank ordered lenders in Shanghai to raise interest rates on mortgage loans.

Prices in China's smaller tier-three and tier-four cities rose 0.21% on-month, versus 0.29% in June. Tier-two cities, which include some provincial capitals, gained 0.29%, slowing from June's 0.31% rise.

Price growth in China's biggest cities such as Shanghai and Beijing, however, continued to accelerate, up 0.54% versus June's 0.48% growth, suggesting persistent demand for properties in the country's economically most vibrant cities.

But new home prices in the southern tech hub of Shenzhen declined 0.26%, the first drop since February. Local media had warned in May that Shenzhen could be a testing ground for China's plans to impose a nationwide property tax, due to elevated home prices.

On an annual basis, China's new home prices grew 3.81% in July, slowing from June's 3.89% gain.

Resale homes also showed slower month-on-month price growth in July, while existing home prices in Shenzhen were down 0.43% on-month.

Local governments in some hot property markets may implement pricing references for resale homes to stabilise prices, the survey said.

© Reuters. FILE PHOTO: A woman rides a tricycle carrying a child near a residential compound in Beijing's Tongzhou district, China, February 25, 2016. REUTERS/Jason Lee

Land sales by floor space in 300 cities fell 25% in July from a month earlier, and declined 38% on an annual basis, separate survey data showed.

The National Bureau of Statistics will release official July data for China's home prices in mid-August.

 

 

Latest comments

Hi
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.