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House prices continuing to rise
By Cao Qian |
March 19, 2011, Saturday
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Print Edition
Print Edition
HOUSE prices continued to rise in major Chinese cities last month, though there was evidence of a slowdown.
The prices of new homes, excluding affordable housing, rose more than 1 percent month on month in seven cities out of 70 monitored across China, compared to 19 cities registered in January, the National Bureau of Statistics said yesterday.
Prices rose the most, or 1.5 percent, in Fuzhou of Fujian Province and Zhengzhou of Henan Province, followed by Xiamen in Fujian, at 1.4 percent, the bureau said. Shanghai, together with three other cities, ranked fourth with new home prices climbing 1.1 percent from January.
Meanwhile, the prices of existing homes advanced by more than 1 percent in five out of the 70 cities in February, with Shenzhen in Guangdong Province leading all gainers with 2 percent growth. That compared to rises in 14 cities a month earlier.
On a year-on-year basis, one of the 70 cities registered a decline in new home prices and 31 cities witnessed slower growth in February. For existing houses, three cities suffered price declines and 22 cities saw slower growth.
"The February data did show that more cities across China recorded slower growth or even declines in prices over the past month," said Zhang Qi, an analyst with China Index Academy, a real estate research organization.
"However, that doesn't necessarily mean that the latest tightening measures from the central government have already taken effect."
In most cases, it will take at least three months for government policies to leave any major impact on the market, Zhang said, adding that the seemingly "positive signs" in February data might just be caused by the increased volume of cheaper houses.
In Shanghai, for instance, the average price of new homes, excluding affordable housing, fell 10 percent to 20,625 yuan (US$3,139) per square meter last month amid sluggish sales of high-end projects, according to data from Shanghai Uwin Real Estate Information Services Co.
The transaction volume of new homes within the city's Inner Ring Road dropped 91 percent in February from a month earlier and only 57 units of new homes - each costing more than 40,000 yuan per square meter - were sold, the fewest since March 2009, Uwin data showed.
"At the moment, most real estate developers still remain cautious," said Huang Hetao, a research manager with Century 21 China Real Estate.
"If transaction volume continues to be slack until April, notable price cuts may then be expected," Huang added.
The prices of new homes, excluding affordable housing, rose more than 1 percent month on month in seven cities out of 70 monitored across China, compared to 19 cities registered in January, the National Bureau of Statistics said yesterday.
Prices rose the most, or 1.5 percent, in Fuzhou of Fujian Province and Zhengzhou of Henan Province, followed by Xiamen in Fujian, at 1.4 percent, the bureau said. Shanghai, together with three other cities, ranked fourth with new home prices climbing 1.1 percent from January.
Meanwhile, the prices of existing homes advanced by more than 1 percent in five out of the 70 cities in February, with Shenzhen in Guangdong Province leading all gainers with 2 percent growth. That compared to rises in 14 cities a month earlier.
On a year-on-year basis, one of the 70 cities registered a decline in new home prices and 31 cities witnessed slower growth in February. For existing houses, three cities suffered price declines and 22 cities saw slower growth.
"The February data did show that more cities across China recorded slower growth or even declines in prices over the past month," said Zhang Qi, an analyst with China Index Academy, a real estate research organization.
"However, that doesn't necessarily mean that the latest tightening measures from the central government have already taken effect."
In most cases, it will take at least three months for government policies to leave any major impact on the market, Zhang said, adding that the seemingly "positive signs" in February data might just be caused by the increased volume of cheaper houses.
In Shanghai, for instance, the average price of new homes, excluding affordable housing, fell 10 percent to 20,625 yuan (US$3,139) per square meter last month amid sluggish sales of high-end projects, according to data from Shanghai Uwin Real Estate Information Services Co.
The transaction volume of new homes within the city's Inner Ring Road dropped 91 percent in February from a month earlier and only 57 units of new homes - each costing more than 40,000 yuan per square meter - were sold, the fewest since March 2009, Uwin data showed.
"At the moment, most real estate developers still remain cautious," said Huang Hetao, a research manager with Century 21 China Real Estate.
"If transaction volume continues to be slack until April, notable price cuts may then be expected," Huang added.
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