New home prices in China rose at the fastest pace in eight months in April, Real Estate News, ET RealEstate
Average new home prices in 70 major cities rose 0.6% in April from the previous month, the fastest pace since August 2020 and up a notch from a 0.5% gain in March , according to Reuters calculations based on data released by the National Bureau of Statistics. .
On an annual basis, new home price growth reached an eight-month high of 4.8%, from 4.6% in March.
First and second-tier cities continued to lead monthly price growth, with new home prices in these cities increasing an average of 0.6% month-over-month in April, the NBS said in a press release accompanying the data.
Among these, Chongqing Municipality and Guangzhou City are the main contributors to this force.
“Local governments have become more surgical in their management of the housing market, unlike previous large-scale repressions, so the demand to buy housing to live or to invest in large cities has not been completely squeezed out,” said Lu Wenxi, chief real estate analyst. Centaline agency.
With smaller cities imposing tightening measures, the advantage of being in a “political vacuum” was gone, and purchasing power had returned to the big cities, he added. He also expected house prices in Tier 1 and Tier 2 cities to continue to climb, outperforming lower tier cities.
Real estate, a vital source of growth for the Chinese economy, rebounded quickly after the COVID-19 crisis. But a relentless rise in house prices in major cities, which is now spilling over to smaller ones nearby, has raised concerns about overheating.
This month, authorities in a dozen cities have stepped up their campaigns to drive speculators out of the real estate market, using progressive tools rather than sweeping the curbs. Local policies plan to cap prices set by developers and prevent some real estate agencies from setting prices that are too high for used homes.
NBS data showed 62 cities reported monthly gains, unchanged from the March tally.
Last month, Chinese leaders pledged to boost the supply of affordable rental and social housing, and to prevent speculation in various real estate markets, including homes in school districts.
Separate figures from NBS showed that China’s real estate investment rose 21.6% in the first four months of the year, after slowing 25.6% in the first quarter, amid heightened surveillance promoters to avoid frenzied growth in debt.