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New home price falls outnumber rises
By Cao Qian |
November 19, 2011, Saturday
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Print Edition
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CHINESE cities reporting a fall in new home prices finally outnumbered those registering growth in October, as austerity measures continued to weigh on, China's top statistics bureau said yesterday.
New home prices, excluding those of government-funded affordable housing, fell in 34 out of 70 cities across the country, according to the National Bureau of Statistics.
Prices remained unchanged from a month earlier in 20 cities and gained in the remaining 16, though at a slower pace.
That compared with a fall in 17 cities and an increase in 24 cities recorded in September.
In Shanghai, Beijing, Guangzhou and Shenzhen, the country's four gateway cities, where rein-in measures such as home purchase restrictions have been rigorously enforced, new home prices finally fell in October from a month earlier - by between 0.1 and 0.3 percent - after remaining unchanged for three months.
Nationwide, new home prices in Wenzhou, Zhejiang Province, dropped by the most last month - down 4.9 percent from September - leading the falls for the second consecutive month.
"This could indicate the arrival of a turning point in terms of home prices," said Yang Hongxu, an analyst with Shanghai-based E-house China Research and Development Institute.
"Over the next six months, we will probably see more cities registering month-on-month price decreases."
Indeed, more real estate developers are joining price-cutting campaigns.
Developers are under increasing capital pressure due to stalled home sales over the past nine months as a result of rein-in measures.
In Shanghai, China Vanke Co, the nation's largest publicly traded developer, has reduced the asking prices at two residential developments - one in the Pudong New Area and the other in Qingpu District - by 30 percent.
This follows cuts by rivals, including Longfor, Greenland and China Overseas Property, which succeeded in boosting sales but incurred the wrath of homeowners who had paid higher sums earlier.
The Shenzhen-based developer reported earlier this month that home sales around the country totaled 1 million square meters, or 10.34 billion yuan (US$1.628 billion) by value, in October.
This represents a year-on-year drop of 23 percent in area and 33 percent in value.
Government data also showed that prices for existing homes dropped in 38 cities in October from a month earlier, 13 more than in September.
On a year-on-year basis, two cities saw a decrease in new home prices last month, compared to one in September.
In the existing homes market, prices fell in 13 cities, compared to seven registered a month earlier.
New home prices, excluding those of government-funded affordable housing, fell in 34 out of 70 cities across the country, according to the National Bureau of Statistics.
Prices remained unchanged from a month earlier in 20 cities and gained in the remaining 16, though at a slower pace.
That compared with a fall in 17 cities and an increase in 24 cities recorded in September.
In Shanghai, Beijing, Guangzhou and Shenzhen, the country's four gateway cities, where rein-in measures such as home purchase restrictions have been rigorously enforced, new home prices finally fell in October from a month earlier - by between 0.1 and 0.3 percent - after remaining unchanged for three months.
Nationwide, new home prices in Wenzhou, Zhejiang Province, dropped by the most last month - down 4.9 percent from September - leading the falls for the second consecutive month.
"This could indicate the arrival of a turning point in terms of home prices," said Yang Hongxu, an analyst with Shanghai-based E-house China Research and Development Institute.
"Over the next six months, we will probably see more cities registering month-on-month price decreases."
Indeed, more real estate developers are joining price-cutting campaigns.
Developers are under increasing capital pressure due to stalled home sales over the past nine months as a result of rein-in measures.
In Shanghai, China Vanke Co, the nation's largest publicly traded developer, has reduced the asking prices at two residential developments - one in the Pudong New Area and the other in Qingpu District - by 30 percent.
This follows cuts by rivals, including Longfor, Greenland and China Overseas Property, which succeeded in boosting sales but incurred the wrath of homeowners who had paid higher sums earlier.
The Shenzhen-based developer reported earlier this month that home sales around the country totaled 1 million square meters, or 10.34 billion yuan (US$1.628 billion) by value, in October.
This represents a year-on-year drop of 23 percent in area and 33 percent in value.
Government data also showed that prices for existing homes dropped in 38 cities in October from a month earlier, 13 more than in September.
On a year-on-year basis, two cities saw a decrease in new home prices last month, compared to one in September.
In the existing homes market, prices fell in 13 cities, compared to seven registered a month earlier.
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