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House prices in nation's major cities continue to decline
By Cao Qian |
February 20, 2012, Monday
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Print Edition
Print Edition
House prices continued to fall in the majority of China's major cities last month, according to the National Bureau of Statistics.
Excluding government-funded affordable housing, prices fell month-on-month in 48 of the 70 cities monitored by the bureau in January, while the others saw prices unchanged.
No city reported price rises, compared to two in December which recorded a monthly gain of 0.1 percent. In January 2011, 60 of the 70 cities saw rises in new home prices.
In Shanghai, Beijing, Guangzhou and Shenzhen, where home purchase restrictions have been rigorously enforced, new home prices fell between 0.1 and 0.3 percent in January from the previous month.
"For the first time, none of the cities posted gains in new home values since the country's top statistics body began to release prices for 70 cities instead of a national average a year ago," said Sky Xue, an analyst with China Real Estate Information Services Co.
"Apparently, the market is moving in a direction that the central government has wished with all tightening measures remaining strictly implemented."
Previously owned
Year-on-year declines were recorded in more cities with 15 seeing a fall in new home prices in January from a year ago, compared to nine in December and four in November.
Data also showed that prices for previously owned homes fell in 54 cities in January, three more than in December.
The residential market will probably remain in the doldrums in coming months due to rising inventory and slack buying momentum, industry analysts predicted.
As of January 31, new home stock totalled around 59.1 million square meters in 10 major Chinese cities, an increase of more than 40 percent from the same time a year earlier, according to Shanghai-based E-house China Research and Development Institute.
Yin Zhongli, a researcher with the Chinese Academy of Social Sciences, told Xinhua news agency that around 69 percent of the surveyed cities registered dips in new home prices last month, which showed a general downward trend had formed.
He forecast that prices might see steeper falls in the second half of this year if the government maintains its monetary tightening and policies to control home purchases.
Excluding government-funded affordable housing, prices fell month-on-month in 48 of the 70 cities monitored by the bureau in January, while the others saw prices unchanged.
No city reported price rises, compared to two in December which recorded a monthly gain of 0.1 percent. In January 2011, 60 of the 70 cities saw rises in new home prices.
In Shanghai, Beijing, Guangzhou and Shenzhen, where home purchase restrictions have been rigorously enforced, new home prices fell between 0.1 and 0.3 percent in January from the previous month.
"For the first time, none of the cities posted gains in new home values since the country's top statistics body began to release prices for 70 cities instead of a national average a year ago," said Sky Xue, an analyst with China Real Estate Information Services Co.
"Apparently, the market is moving in a direction that the central government has wished with all tightening measures remaining strictly implemented."
Previously owned
Year-on-year declines were recorded in more cities with 15 seeing a fall in new home prices in January from a year ago, compared to nine in December and four in November.
Data also showed that prices for previously owned homes fell in 54 cities in January, three more than in December.
The residential market will probably remain in the doldrums in coming months due to rising inventory and slack buying momentum, industry analysts predicted.
As of January 31, new home stock totalled around 59.1 million square meters in 10 major Chinese cities, an increase of more than 40 percent from the same time a year earlier, according to Shanghai-based E-house China Research and Development Institute.
Yin Zhongli, a researcher with the Chinese Academy of Social Sciences, told Xinhua news agency that around 69 percent of the surveyed cities registered dips in new home prices last month, which showed a general downward trend had formed.
He forecast that prices might see steeper falls in the second half of this year if the government maintains its monetary tightening and policies to control home purchases.
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