China property: new home prices grew moderately in December, as tightening measures cooled market
- Average new home prices in 70 major cities rose 0.1 per cent in December, according to National Bureau of Statistics
- Monthly gains were driven by price rises in cities such as Beijing, Shanghai and Shenzhen
China’s new homes prices grew moderately in December, official data showed on Friday, as government measures aimed at cooling the property market took their toll.
Average new home prices in 70 major cities rose 0.1 per cent month on month in December, according to data from the National Bureau of Statistics (NBS). The pace of growth was unchanged from November. New home prices rose 3.8 per cent in December versus a year earlier, slowing slightly from a 4 per cent increase in November.
China’s property market has recovered quickly from the Covid-19 pandemic thanks to local governments’ relaxation on price ceilings and urban residency permits, while access to mortgages has also become easier.
But the sharp rebound has raised concerns about financial risk, with the government stepping up efforts to deleverage a highly indebted sector since the second half of last year. Regulators outlined borrowing caps known as “the three red lines” in August, followed by the central bank in December, which introduced caps on property loans issued by banks.
The NBS data also showed that the number of cities reporting monthly price increases for new homes rose to 42 out of 70 from 36 in November. Monthly gains were driven by price rises in tier-1 cities, including Beijing, Shanghai, Guangzhou and Shenzhen, underscoring the deepening disparity in the market.