-
Advertorial
-
FOCUS
-
Guide
-
Lifestyle
-
Tech and Vogue
-
TechandScience
-
CHTF Special
-
Nanhan
-
Futian Today
-
Hit Bravo
-
Special Report
-
Junior Journalist Program
-
World Economy
-
Opinion
-
Diversions
-
Hotels
-
Movies
-
People
-
Person of the week
-
Weekend
-
Photo Highlights
-
Currency Focus
-
Kaleidoscope
-
Tech and Science
-
News Picks
-
Yes Teens
-
Fun
-
Budding Writers
-
Campus
-
Glamour
-
News
-
Digital Paper
-
Food drink
-
Majors_Forum
-
Speak Shenzhen
-
Business_Markets
-
Shopping
-
Travel
-
Restaurants
-
Hotels
-
Investment
-
Yearend Review
-
In depth
-
Leisure Highlights
-
Sports
-
World
-
QINGDAO TODAY
-
Entertainment
-
Business
-
Markets
-
Culture
-
China
-
Shenzhen
-
Important news
在线翻译:
szdaily -> Business
New home price growth cools in July
    2017-August-21  08:53    Shenzhen Daily

HOME price growth slowed in July, with Beijing declining for a second straight month, reinforcing expectations that property price growth may stagnate over the course of the year.

Government restrictions to keep prices in check weighed on larger cities, with July showing the slowest growth since August 2016, while smaller centers pulled back but remained robust.

As China’s home price rises have generally been moderating and sales are slowing, analysts do not see a major risk of a sharp price fall or crash, given the strength of underlying housing demand.

“We need the administrative measures in the short term but keeping them long-term would be a retreat for the market economy,” said Joe Zhou, head of Research for China at Jones Lang LaSalle (JLL).

Nonetheless, developers expect the curbs to be longer term. Ouyang Jie, vice president of Shanghai-listed Future Land, believes the controls will be in place for the next five years.

“We think the current restrictions on purchases, borrowing and price growth will continue for five years, but the price cap over new units may be relaxed gradually over the years,” he said.

Analysts say the speculative switch to smaller cities and their large housing overhang has resulted in an alarming rise in debt in those centers.

Beihai, a small port city in the Guangxi region on China’s southwest coast, had the biggest monthly price increase of 1.5 percent in July and posted robust annual growth of 14 percent.

“I think the small city boom is a trap,” JLL’s Zhou said. “It won’t last long because I don’t see the possibility of a huge drop in inventory there while there is not enough population inflow to support demand.”

While the National Bureau of Statistics (NBS) said the housing market should still be able to maintain stable growth, many economists expect the residential sector to lose momentum in the second half of the year in the face of policy tightening and an official financial deleveraging campaign.

Average new home prices in China’s 70 major cities rose 0.4 percent in July from the previous month, slowing from the 0.7 percent growth in June as policymakers battled to rein in demand.

In China’s biggest markets, Beijing’s new home prices fell 0.1 percent in July, after declining 0.4 percent in June. Shanghai prices stalled while Shenzhen prices fell by 0.2 percent from a month ago.

Compared with a year ago, new home prices rose 9.7 percent in July, easing from a 10.2 percent gain in June and marking the slowest growth since August 2016, Reuters calculated from the NBS data.

New construction starts measured by floor area, a telling indicator of developers’ confidence, contracted for the first time since last September, falling 7 percent in July from a year ago, compared to a 14 percent increase in June.

Household loans, mostly mortgages, fell to 561.6 billion yuan (US$84.13 billion) in July from 738.4 billion yuan in June, according to Reuters calculations based on central bank data.

But household loans as a proportion of total new loans rose to 68 percent from 48 percent in June, suggesting banks were more exposed to the property market even though it cooled in July. (SD-Agencies)

 

深圳报业集团版权所有, 未经授权禁止复制; Copyright 2010, All Rights Reserved.
Shenzhen Daily E-mail:szdaily@szszd.com.cn