BEIJING, Oct 1 (Businesshala) – Chinese new-home prices in September rose at their slowest pace since March 2020, as property markets softened further amid continued crackdown on speculation, including caps on home purchases, a private company said on Friday. Shown in the field survey.
Prices of new homes in 100 cities rose 0.14% in September from a month earlier, down from a 0.2% increase in August, according to data from China Index Academy, one of the country’s largest independent real estate research firms.
In September, some cities intensified their campaigns to kick speculators out of the property market, taking more targeted measures such as cracking down on speculation on school district properties.
Regulators in the northeastern city of Shenyang and the southern city of Haikou in late September urged real estate developers and agencies to refrain from hyping homes in school districts.
“We expect ongoing asset restrictions to ease in the near term, as Beijing attaches national strategic importance to reining in the asset bubble, directly interfering with the credit supply for the property sector. leaving little room to dial back these restrictions”, Nomura said in a recent note.
Prices in the biggest tier-one cities such as Shanghai and Beijing rose 0.16%, up from 0.11% gains in August.
Monthly new-home prices in tier-two cities, including provincial capitals, rose 0.17% after a 0.31% increase in August, and rose 0.1% in tier-three and tier-four cities, compared to 0.12% in August.
On an annualized basis, overall new home prices increased by 3.4% in September, compared to a 3.51% gain in August.
Sentiment in China’s property market has been shaken by concerns of default risks among real estate firms as the debt crisis at property giant China Evergrande Group deepens.
China’s central bank vowed on Monday to protect consumers exposed to the asset sector and inject more cash into the banking system as the Shenzhen government launched an investigation into Evergrande’s wealth management unit.
The National Bureau of Statistics will release official September data for China’s house prices in mid-October. (Reporting by Liangping Gao and Tony Munro; Editing by Leslie Adler)