China new home price growth slows in July as measures to rein in red-hot property market pay off
- New home prices in 100 cities rose 0.35 per cent in July from a month earlier, versus 0.36 per cent growth in June, according to data from China Index Academy
- Price growth in top cities such as Shanghai and Beijing, however, continued to accelerate, rising 0.54 per cent versus 0.48 per cent growth in June
China’s growth in new home prices slowed in July for the first time in five months, with smaller cities especially weighed down by higher mortgage rates, price caps on resale homes and other steps to cool speculation, a private-sector survey showed on Sunday.
New home prices in 100 cities rose 0.35 per cent in July from a month earlier, versus 0.36 per cent growth in June, according to data from China Index Academy, one of the country’s largest independent real estate research firms.
“New home growth softened in July against the backdrop of stringent measures and tighter credit”, said the group’s director, Cao Jingjing.
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Growth in home sales is expected to remain mild as the curbs are unlikely to be eased, the survey said.
In July, China’s housing ministry urged five cities including the eastern city of Jinhua and the southeastern city of Quanzhou to stabilise their property markets, while the central bank ordered lenders in Shanghai to raise interest rates on mortgage loans.
Prices in China’s smaller tier-three and tier-four cities rose 0.21 per cent on-month, versus 0.29 per cent in June. Tier-two cities, which include some provincial capitals, gained 0.29 per cent, slowing from June’s 0.31 per cent rise.
On an annual basis, China’s new home prices grew 3.81 per cent in July, slowing from June’s 3.89 per cent gain.
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Resale homes also showed slower month-on-month price growth in July, while existing home prices in Shenzhen were down 0.43 per cent on-month.
Local governments in some hot property markets may implement pricing references for resale homes to stabilise prices, the survey said.
Land sales by floor space in 300 cities fell 25 per cent in July from a month earlier, and declined 38 per cent on an annual basis, separate survey data showed.
The National Bureau of Statistics will release official July data for China’s home prices in mid-August.
