Jul 15, 2020
China Home Prices Rise Most in 10 Months, Prompting More Curbs
(Bloomberg) -- China home prices rose at the fastest pace in 10 months in June, prompting some local authorities to roll out fresh housing curbs.
- New-home prices in 70 major cities, excluding state-subsidized housing, increased 0.58% last month, National Bureau of Statistics data released Thursday showed.
- Property prices have rebounded as the central bank loosens credit to support an economic recovery from the coronavirus shutdown. Frenetic buying is increasingly taking place across large and medium cities, where properties are seen as a safe place to store wealth.
- Policy makers are responding quickly, rolling out fresh curbs to cool demand. Earlier this month, authorities in Ningbo raised eligibility requirements to buy a property. Tech hub Shenzhen imposed harsher curbs on Wednesday, raising the bar for first-time buyers.
- “The government wants to exclude property from their credit easing, and has been reacting fast to any sign of a housing bubble,” Nomura Holdings Inc. property analyst Leif Chang said before the data was released. “We expect home-price growth to slow in the third quarter.”
- For the full year, Nomura forecasts average nationwide house-price growth of 3%. However, performance may diverge heavily between large and small cities, as some economically weaker towns still see subdued sales, according to China Real Estate Information Corp.
- For more details on the price data, click here
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