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China new home prices grew at their slowest pace in 10 months in February - NBS

Infra News - Published on Wed, 20 Mar 2019

Image Source: News in Africa
According to the country’s National Bureau of Statistics, prices of new homes in mainland China grew at their slowest pace in 10 months in February, especially in smaller cities. Across 70 cities monitored by the government, prices edged up by 0.53 per cent last month, their slowest pace since April 2018 and down from 0.61 per cent in January.

Yan Yuejin, research director at E-House China R&D Institute, said that “Since property market sentiment cooled last August, it will take a while for buyers to return to the market.”

The prices of new homes rose in 57 out of the 70 cities covered, down from 58 in January and 59 in December. In particular, 35 smaller cities categorised by the bureau as tier 3 towns reported a 0.4 per cent increase, slower than a 0.6 per cent increase a month earlier and the 0.7 per cent gain registered in tier 2 cities.

Prices fell the most – by 0.4 per cent – in Quanzhou, a footwear and electronics manufacturing hub, according to the bureau. An earlier report by consultancy CRIC said Jinjiang, a district under Quanzhou, reported as much as a 73 per cent decline in home sales during Lunar New Year.

Other small cities, such as Yueyang, Bengbu and Huizhou, that reported large declines in sales during Lunar New Year, also recorded price declines.

Yang Kewei, an analyst with CRIC, said that “The Lunar New Year holiday is supposed to be a busy season for developers, as people returning from China’s big cities buy apartments in their hometowns. But this year, this did not materialise. After a bull run, home prices in these cities are already expensive for returnees, and the outlook for further price rises is weak.”

Property sales by area declined by 3.6 per cent year on year across China, and by 2.8 per cent in value against a 12.2 per cent increase last year, according to the bureau.

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Posted By : Rabi Wangkhem on Wed, 20 Mar 2019
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