Housing sector

The housing sector shows signs of stabilization

BEIJING: As “housing is for living in, not speculation” remains the dominant mantra in the real estate industry, prices for new and second-hand homes in major Chinese cities rose at a slower pace in October compared to to the previous year, and experts expect the adjustments to lead to a better balance between supply and demand in the housing sector.

The majority of the country’s 70 large and mid-sized cities saw home prices fall month-on-month in October, with new and used home prices rising at a slower pace than a year ago , said Sheng Guoqing, chief statistician at the National Bureau of Statistics (NBS).

New home prices in the 70 major cities tracked by the NBS rose 2.8% year-on-year in October, but fell 0.3% from September.

New home prices in first-tier cities were little changed on average from the previous month.

Among them, Beijing and Shanghai saw increases of 0.6 percent and 0.1 percent in transaction prices, respectively, compared to a decline of 0.2 percent in Shenzhen and a decline of 0.3 percent in Guangzhou.

Compared to a year ago, new home prices in the four benchmark cities increased at a slower pace of 5%.

The 31 second-tier cities, mostly provincial capitals, fell 0.2% on average month-on-month.

Compared to last year, their average prices increased by 3.7%.

Among the 35 third-tier cities, the two figures were respectively negative 0.3% and positive 1.8%, according to the BNS.

“This is the second month in a row that the new housing price index has seen a slight decline from the previous month, sending an alert that care must also be taken to prevent the housing market from becoming too cool. said Yan Yuejin, director of the Shanghai-based China E-house Research and Development Institute.

“In addition to financing adjustments to facilitate credit for genuine home buyers and measures to encourage rigid housing demand, existing policies should gradually take effect and further stabilize the domestic market,” Yan said, adding that the resumed sales in some Chinese cities would help. stabilize the house price index in November.

The cooling sentiment for home purchases is most evident in the second-hand housing market.

First-tier cities saw existing home prices fall 0.4% from the previous month.

Specifically, Guangzhou recorded the largest month-over-month decline of 0.6% in transaction prices among the four megacities, followed by declines in Beijing of 0.5%, Shanghai of 0.4% and Shenzhen by 0.2%.

The four cities averaged 6.7% year-on-year growth in existing home prices.

Second-hand home prices in the 31 second-tier cities fell 0.3% from the previous month, but rose 2.5% year-on-year.

The 35 third-tier cities saw existing home prices fall 0.3% from the previous month, despite rising 1% from a year ago.

“Although more cities saw house price adjustments in October, about 80% of their house price declines were less than 0.5%, showing that house prices in Chinese cities are basically stable. “, said Xu Xiaole, chief analyst at the Beike Research Institute.

Since the second half of the year, mortgages issued have declined, and promotions and discounts offered by real estate developers are adding downward pressure on house prices, Xu said.

Likewise, more and more landlords are willing to offer discounts for their residential properties in the secondary market, he pointed out.

Since October, the adjustment of financial credit policy has supported the restoration of reasonable housing purchase demand, and the improvement in the financing environment for real estate enterprises has also effectively improved market expectations. .

Experts expect market confidence to improve further next year. – Chinese Daily/ANN