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Urban property prices gain 12.4% in May
By Cao Qian |
June 10, 2010, Thursday
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Online Edition
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CHINA'S urban property prices extended their growth for the 12th consecutive month in May but decelerated pace as cooling measures introduced in April begin to take effect.
Real estate prices in 70 major cities on the Chinese mainland rose 12.4 percent from a year earlier, the National Bureau of Statistics said today on its Website. That compared to a 12.8 percent gain in April, the biggest year-on-year growth since July 2005, when the bureau doubled the number of cities it was tracking.
"A slower growth has indicated that earlier government efforts to curb housing speculation is gradually taking effect," said Song Huiyong, director of research at Shanghai Centaline Property Consultants Ltd. "However, it is still too early to say that the market will bottom out soon as the current 'tug-of- war' between home owners and buyers will probably continue for some time before further policies are rolled out."
Tightening measures introduced by the central government have slashed home sales in the country's first and second-tier cities while significant price discounts are yet to come. As for third and fourth-tier cities, transaction volume hasn't been cut much generally while home prices maintained their upward trend, Song added.
In Shanghai, transactions in new homes plunged 70 percent last month to 300,000 square meters while average price of new homes, excluding those designated for relocated residents under urban-redevelopment plans, dipped 2.6 percent from April to 22,338 yuan (US$3,270) per square meter, Shanghai Uwin Real Estate Information Services Co said.
And in the existing home market, volume also dropped around 70 percent to 6,500 units in May with sale prices about 10 percent lower than a month earlier, according to Centaline research.
In mid April, the central government raised the down-payment requirement on second-home mortgages to at least 50 percent from 40 percent and the State Council, the nation's Cabinet, also issued a notice later saying that banks should suspend housing credit to buyers of three or more homes.
In the latest effort, China's housing and lending regulators and the central bank announced last week that banks should consider both the mortgage and home purchase records of people applying for second mortgages, the first time China has included home ownership records in determining second home mortgages.
Across the country, prices of new and existing homes jumped 15.1 percent and 9.2 percent year on year in May while in Shanghai, they rose both 11.5 percent.
In the first five months of this year, property sales, by area, rose 22.5 percent nationwide to 302 million square meters, 10.3 percentage points lower from the growth in the first four months, the statistics bureau said.
Real estate prices in 70 major cities on the Chinese mainland rose 12.4 percent from a year earlier, the National Bureau of Statistics said today on its Website. That compared to a 12.8 percent gain in April, the biggest year-on-year growth since July 2005, when the bureau doubled the number of cities it was tracking.
"A slower growth has indicated that earlier government efforts to curb housing speculation is gradually taking effect," said Song Huiyong, director of research at Shanghai Centaline Property Consultants Ltd. "However, it is still too early to say that the market will bottom out soon as the current 'tug-of- war' between home owners and buyers will probably continue for some time before further policies are rolled out."
Tightening measures introduced by the central government have slashed home sales in the country's first and second-tier cities while significant price discounts are yet to come. As for third and fourth-tier cities, transaction volume hasn't been cut much generally while home prices maintained their upward trend, Song added.
In Shanghai, transactions in new homes plunged 70 percent last month to 300,000 square meters while average price of new homes, excluding those designated for relocated residents under urban-redevelopment plans, dipped 2.6 percent from April to 22,338 yuan (US$3,270) per square meter, Shanghai Uwin Real Estate Information Services Co said.
And in the existing home market, volume also dropped around 70 percent to 6,500 units in May with sale prices about 10 percent lower than a month earlier, according to Centaline research.
In mid April, the central government raised the down-payment requirement on second-home mortgages to at least 50 percent from 40 percent and the State Council, the nation's Cabinet, also issued a notice later saying that banks should suspend housing credit to buyers of three or more homes.
In the latest effort, China's housing and lending regulators and the central bank announced last week that banks should consider both the mortgage and home purchase records of people applying for second mortgages, the first time China has included home ownership records in determining second home mortgages.
Across the country, prices of new and existing homes jumped 15.1 percent and 9.2 percent year on year in May while in Shanghai, they rose both 11.5 percent.
In the first five months of this year, property sales, by area, rose 22.5 percent nationwide to 302 million square meters, 10.3 percentage points lower from the growth in the first four months, the statistics bureau said.
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