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China's home price growth picks up in October; up 0.3 %

As mega-cities like Beijing impose increasingly stringent measures, speculators have moved to smaller centres this year where authorities offer cheap credit and impose few restrictions

Reuters  |  Beijing 

File Photo: Reuters
File Photo: Reuters

China's new home rose at a slightly faster pace in after gains had held steady the previous month, as remained resilient in the face of falling sales and a tighter liquidity environment.

China's has seen a near two-year boom, giving the a major boost but stirring fears of a property bubble, with the government taking strong measures to curtail purchases.

Authorities have been particularly focused on curbing speculative lending in the and have continued a broad effort to defuse financial risks from a rapid build-up in debt in the

Average new home rose 0.3 per cent month-on-month in October, compared with a 0.2 per cent gain in September, according to Reuters calculations from National Bureau of Statistics (NBS) data out on Saturday.

The number of cities surveyed that recorded monthly increases in increased in October, indicating broadening strength in markets nationwide.

New home rose in October, down from September's 6.3 per cent increase as rapid increases subside in the face of government efforts to engineer a soft landing in the

Data on Monday showed household loans, mostly for property purchases, fell to 450.1 billion yuan in from 734.9 billion yuan in September.

While monthly price rises peaked in September 2016 at 2.1 per cent nationwide, they have softened only slowly, regaining momentum as buyers shrugged off each new measures to curb speculation.

for new private homes in top-tier cities fell 0.1 per cent in October, narrowing from a 0.2 percent decline in September, the said in a note accompanying the data.

In the southern boomtown of Shenzhen, which borders Hong Kong, fell 0.1 per cent after being flat in September. They fell 3.3 per cent from a year earlier.

Property values rose 0.2 percent on-month in after remaining unchanged in September.

As mega-cities like Beijing impose increasingly stringent measures, speculators have moved to smaller centres this year where authorities offer cheap credit and impose few restrictions in the hope of clearing a glut of unsold homes.

Property in tier-3 cities rose 0.3 per cent from a 0.2 per cent increase in September, the said in the note.

While market watchers do not anticipate significant price declines or a crash, weakness in property and construction is starting to drag on broader economic growth.

growth eased to 6.8 percent last quarter from 6.9 percent in the first half, with a marked deceleration in the property sector.

Data on Tuesday showed property sales in fell at the fastest rate in more than 2-1/2 years and housing starts slowed sharply, reinforcing views that China's robust growth is starting to cool.

The majority of the 70 cities surveyed by the still reported a monthly price increase for new homes. Fifty reported higher in from 44 in September.

 

 

First Published: Sat, November 18 2017. 11:02 IST
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