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Rise in sentiment fuels China's new home prices
Source: Agencies/Shanghai Daily |
November 2, 2012, Friday
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CHINA'S new home prices rose for the fifth month in October as buying sentiment improved and sales volume rebounded, a latest industry report showed.
The average price of new homes across 100 domestic cities gained 0.17 percent from that of September to 8,768 yuan (US$1,405) per square meter, China's largest real estate website Soufun said in a statement yesterday.
The figure was an annual drop of 1 percent and 0.4 percentage point lower than that of the September, according to Soufun.
Monthly gains were seen in 56 cities while prices in 42 cities fell and two were flat.
During the past few months, property prices were seen stabilizing and sales volume rebounded as home buying sentiment gradually rose.
"The housing price will continue to grow mildly in the fourth quarter and transactions will also climb steadily although the pace will not be as fast as the previous months," said Fu Wei, a marketing official at Hanyu Property.
In September, contract sales of new homes rose 19 percent from August's to 540 billion yuan as sentiment improved in the traditional season for home sales, the National Bureau of Statistics said last month.
Quarterly earnings of listed developers also recovered, with cash pressure easing amid improving sales. A total of 115 listed real estate developers reported a combined 34.6 billion yuan net profit in the first three quarters of this year, up 11.4 percent annually.
"The market has quite a healthy status with modest price and sales rises," said Johnson Hu, a Hong Kong-based analyst at CIMB-GK Securities Research. "This is what the government would like to see."
Home prices have reversed declines since June after the central bank cut interest rates to stem an economic slowdown and some local authorities eased curbs as land-sale revenues fell.
Wenzhou had the biggest gain of 3.7 percent in October, according to Soufun.
The average price of new homes across 100 domestic cities gained 0.17 percent from that of September to 8,768 yuan (US$1,405) per square meter, China's largest real estate website Soufun said in a statement yesterday.
The figure was an annual drop of 1 percent and 0.4 percentage point lower than that of the September, according to Soufun.
Monthly gains were seen in 56 cities while prices in 42 cities fell and two were flat.
During the past few months, property prices were seen stabilizing and sales volume rebounded as home buying sentiment gradually rose.
"The housing price will continue to grow mildly in the fourth quarter and transactions will also climb steadily although the pace will not be as fast as the previous months," said Fu Wei, a marketing official at Hanyu Property.
In September, contract sales of new homes rose 19 percent from August's to 540 billion yuan as sentiment improved in the traditional season for home sales, the National Bureau of Statistics said last month.
Quarterly earnings of listed developers also recovered, with cash pressure easing amid improving sales. A total of 115 listed real estate developers reported a combined 34.6 billion yuan net profit in the first three quarters of this year, up 11.4 percent annually.
"The market has quite a healthy status with modest price and sales rises," said Johnson Hu, a Hong Kong-based analyst at CIMB-GK Securities Research. "This is what the government would like to see."
Home prices have reversed declines since June after the central bank cut interest rates to stem an economic slowdown and some local authorities eased curbs as land-sale revenues fell.
Wenzhou had the biggest gain of 3.7 percent in October, according to Soufun.
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