Logo of Phnom Penh Post newspaper Phnom Penh Post - February home prices slightly higher in major China cities



February home prices slightly higher in major China cities

Content image - Phnom Penh Post
Workers carry out construction at a property project site in Nantong of China’s Jiangsu province. CHINA DAILY

February home prices slightly higher in major China cities

Home prices in major Chinese cities saw mild year-on-year growth last month and experts expect the tightening measures to play a bigger role in cooling home prices and stabilising the property market.

Prices of new homes in the 70 cities tracked by the National Bureau of Statistics (NBS) rose by 0.36 per cent on a monthly basis in February, compared with the 0.28 per cent gain in January. On a yearly basis, prices grew by 4.06 per cent last month.

Out of the 70 cities, 56 cities saw price growth last month, three more than in January. Two cities reported no change, and 12 recorded a decrease in prices.

NBS chief statistician Sheng Guoqing said: “Although home prices in various Chinese cities performed quite differently on a monthly basis, all the cities saw a mild growth in year-on-year terms.”

Despite the lower base of last year, when the real estate sector in the country was battered due to the novel coronavirus epidemic, the industry is witnessing robust demand due to the country’s faster-than-expected economic recovery.

New home prices in the four top-tier cities rose by 0.5 per cent on a monthly basis, with Guangzhou seeing the maximum gain of 0.9 per cent, followed by Beijing with 0.7 per cent, Shanghai at 0.5 per cent and Shenzhen at 0.1 per cent.

Unlike a year ago, the four major cities saw a 4.8 per cent growth in new home prices, up 0.6 percentage point from that of the previous month, according to the NBS.

First-tier cities outperformed smaller cities in terms of new home price growth. Prices in the 31 second-tier cities monitored by the NBS rose by 0.4 per cent on a monthly basis, and by 4.5 per cent on a yearly basis, while the figures were 0.3 per cent and 3.6 per cent respectively for the 35 third-tier cities.

Beike Research Institute chief market analyst Xu Xiaole said: “With millions of people deciding to stay put during the Spring Festival holiday, the home market became very active in major Chinese cities, leading to price increases.”

In the pre-owned home market, first-tier cities again took the lead in price gains. Fifty-five of the 70 cities reported price growths, six more than in January.

Compared with January, the top-tier cities saw a 1.1 per cent gain in existing home trading. Specifically, Shanghai reported the largest month-on-month increase of 1.3 per cent in transaction prices among the top four cities, followed by Beijing with 1.2 per cent, Guangzhou with 1 per cent, and Shenzhen with 0.9 per cent. The four cities witnessed a 10.8 per cent growth on a yearly basis in existing home prices.

Used home prices in the 31 second-tier cities rose by 0.4 per cent from a month ago, and by 2.9 per cent on a yearly basis.

The 35 third-tier cities saw their existing home prices rise by 0.2 per cent from the previous month, and an increase of 1.9 per cent from the same period a year ago.

Yan Yuejin, director of the Shanghai-based E-house China Research and Development Institution, said: “Quite a few cities have fine-tuned their home purchase measures recently, which effectively helped stabilise home prices. Home price stability would remain as the focus of the residential market.”

And Centaline Property Agency Ltd chief analyst Zhang Dawei said: “In Shenzhen and Shanghai, new tightening policies released recently are expected to cool down the local home markets. We believe that more cities will announce their own cooling measures as the conventional warm-up season is approaching.”

This year may prove challenging for the real estate developers due to the economic headwinds, and financial de-risking may become a renewed focus, according to Savills China research.

CHINA DAILY/ASIA NEWS NETWORK

MOST VIEWED

  • Hong Kong firm done buying Coke Cambodia

    Swire Coca-Cola Ltd, a wholly-owned subsidiary of Hong Kong-listed Swire Pacific Ltd, on November 25 announced that it had completed the acquisition of The Coca-Cola Co’s bottling business in Cambodia, as part of its ambitions to expand into the Southeast Asian market. Swire Coca-Cola affirmed

  • Cambodia's Bokator now officially in World Heritage List

    UNESCO has officially inscribed Cambodia’s “Kun Lbokator”, commonly known as Bokator, on the World Heritage List, according to Minister of Culture and Fine Arts Phoeurng Sackona in her brief report to Prime Minister Hun Sen on the night of November 29. Her report, which was

  • NagaWorld union leader arrested at airport after Australia trip

    Chhim Sithar, head of the Labour Rights Supported Union of Khmer Employees at NagaWorld integrated casino resort, was arrested on November 26 at Phnom Penh International Airport and placed in pre-trial detention after returning from a 12-day trip to Australia. Phnom Penh Municipal Court Investigating Judge

  • Sub-Decree approves $30M for mine clearance

    The Cambodian government established the ‘Mine-Free Cambodia 2025 Foundation’, and released an initial budget of $30 million. Based on the progress of the foundation in 2023, 2024 and 2025, more funds will be added from the national budget and other sources. In a sub-decree signed by Prime Minister Hun Sen

  • Two senior GDP officials defect to CPP

    Two senior officials of the Grassroots Democratic Party (GDP) have asked to join the Cambodian People’s Party (CPP), after apparently failing to forge a political alliance in the run-up to the 2023 general election. Yang Saing Koma, chairman of the GDP board, and Lek Sothear,

  • Cambodia's poverty cut in half from 2009 to 2019: World Bank report

    A report published by the World Bank on November 28 states that Cambodia’s national poverty rate fell by almost half between 2009 and 2019, but the Covid-19 pandemic recently reversed some of the poverty reduction progress. Cambodia’s poverty rate dropped from 33.8 to 17.8 per cent over the 10