New home prices in China’s tier-1 cities rise at faster pace as relief policies, easing of pandemic controls boost market

Name: Beijing’s tentative reopening disrupted by new Covid outbreak linked to nightclub in Chinese capital
Uploaded: 2022-06-16T10:16:46.000Z
Duration: 2 min 8 s
Description: Beijing’s tentative reopening disrupted by new Covid outbreak linked to nightclub in Chinese capital

Prices of new residential units in the mainland’s four biggest, wealthiest cities increased 0.4 per cent in May, compared to 0.2 per cent in April

However, the broader market is struggling, with the cost of new homes in 70 cities across the country sliding 0.2 per cent in May

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Home prices in China’s tier-1 cities increased at a faster pace in May thanks to the relaxation of market curbs. Photo: EPA-EFE

Lam Ka-sing

Published: 6:16pm, 16 Jun 2022

Home prices in China’s biggest, wealthiest cities increased at a faster pace in May, thanks to the relaxation of market curbs.

The wider market remains under immense pressure, however, official figures show.

Prices of new residential units in the four tier-one cities increased 0.4 per cent on average, compared to 0.2 per cent in April, rising for a fifth straight month, according to National Bureau of Statistics data released on Thursday.

“With the intensive deployment of relief policies, especially the relaxation of pandemic controls, the improvement in liquidity has a more significant effect on buying power,” said Li Yujia, senior economist at the Guangdong Urban and Rural Planning and Design Institute, a policy advisory body.

02:08

Beijing’s tentative reopening disrupted by new Covid outbreak linked to nightclub in Chinese capital

The People’s Bank of China (PBOC) cut the five-year loan prime rate from 4.6 per cent to 4.45 per cent last month, the largest reduction on record and the second this year. The move was one of several designed to boost liquidity and help bolster a faltering economy hit by the country’s worst coronavirus outbreaks in two years.

Guangzhou and Shenzhen enjoyed the biggest increases in their house prices, each rising by 0.5 per cent. Beijing’s rose less than in the previous month, while Shanghai’s remained unchanged at zero.

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