China's housing prices ease amid speculation curbs

This aerial photo taken on Sept 8, 2021 shows the construction site for a transaction centre in Qianhai, Shenzhen City, south China's Guangdong province. - Xinhua

BEIJING (Xinhua): China's property market continued to ease in September amid strict government regulations to curb housing speculation, official data showed Wednesday (Oct 20).

New home prices in four first-tier cities stood unchanged in September from a month earlier, compared with a month-on-month growth of 0.3 percent in August, according to the NBS data.

Prices of second-hand homes in the four cities edged down 0.4 percent last month from that in August, reversing the mild month-on-month increase seen in August.

A total of 31 second-tier cities also saw no month-on-month change in new home prices, while 35 third-tier cities saw month-on-month decline of 0.2 percent in new home prices.

The latest data came amid the country's strict housing sector regulations, which follow the principle — "housing is for living in, not for speculation."

Since the beginning of this year, China has implemented a "long-term mechanism" governing the property sector, curbing housing acquisitions by speculators while supporting purchases by families with pressing needs, said NBS spokesperson Fu Linghui.

Under this mechanism, local governments introduced city-specific measures to keep land and home prices stable. Regulators closely monitored loans to home buyers and real estate companies amid the regulations.

Wednesday's data showed that China's over-five-year loan prime rate, a market-based benchmark lending rate on which many lenders base their mortgage rates, remained unchanged from the previous reading of 4.65 percent, said the National Interbank Funding Center.

The latest NBS data showed that the country's property investment rose 8.8 percent, year on year, in the first nine months, slower than the 10.9-percent growth seen in the first eight months.

"The housing market has remained generally stable, with steady investment, sales, and prices," Fu said.

While some worry that tight property market regulations could weigh on the overall economic growth, Fu said that the impact is "limited", as the average growth rate of real estate sector output for the past two years dipped only mildly in the first three quarters.

In a September meeting on real estate sector finance, the country's central bank and the top banking regulator reiterated that "housing should never be used as a short-term stimulus for economic growth."

As China further diversifies housing supply through various channels and facilitates the property rental market, market behavior would become more rational, contributing to the stable development of the housing market, Fu said.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

China ,


Next In Aseanplus News

Coronavirus: Officials punished as China races to contain Inner Mongolia outbreak
China’s middle class families fret as President Xi Jinping ‘tightens grip’ on international schools
The trials of Aung San Suu Kyi, from heroine to villain to convict
Europe hesitant over calls to boycott Beijing Winter Olympics
Hong Kong and other Asian cities shut out of world’s top 10 tourist destinations amid tough travel restrictions
Macau ‘junket king’ Alvin Chau’s life in the limelight goes bust after illegal gambling arrest
Singapore central bank urges prudence in bank finances amid pandemic recovery
Longer trading for Philippine stocks and forex begin as Covid-19 cases eases in country
VTL expected to be opened between Malaysia and Indonesia by early next year
Mourners put wreaths on coffins of Indians mistakenly killed by security forces

Others Also Read