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New | Shanghai’s November new-home prices fall for first time in 21 months as control measures bite

New-home prices in first-tier cities increase just 0.1pc after top economic meeting outlines ‘long-acting mechanism’

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Prices of new homes in Shanghai fell for the first time in 15 months last month. Photo: AFP
Zheng Yangpengin Beijing

Shanghai’s new-home prices fell for the first time in 21 months last month while prices in Beijing halted growth as a raft of government market-cooling measures took its toll.

But a tone-setting economic meeting indicated top leaders had realised the flaws of curbing demand temporarily. Instead authorities vowed “long-term mechanism” to address the underlying imbalances.

New-home prices in Shanghai dipped 0.1 per cent from October, the first decline since February 2015, according to data released by National Bureau of Statistics on Monday. Prices in Shenzhen fell 0.3 per cent while those in Beijing stopped rising.

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Of the 15 major cities that the NBS watches closely, seven saw month-on-month rises last month, a decline from 13 in October.

Household debts have risen sharply as property prices shoot up. Photo: AFP
Household debts have risen sharply as property prices shoot up. Photo: AFP
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New-home prices in the mainland’s first-tier cities increased just 0.1 per cent, a further cooling from 0.5 per cent in October, the NBS said. Momentum in second-tier cities also slowed.

About 20 local governments rolled out a raft of tougher curbs on home-buying during the National Day week-long holiday in a bid to arrest runaway property prices and avoid a potential market bubble.

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