China's November home prices growth eases as fewer cities reported gains amid clampdown
- New home prices grow 0.3 per cent in November from month earlier, rose 7.1 per cent from year earlier
- Only 44 out of 70 cities reported higher prices versus 50 in October, National Bureau of Statistics says
China’s new home prices grew at their weakest pace in nearly two years in November, with tightening policies continuing to cool the market even as some easing is expected to prevent a sharp slowdown.
Average new home prices in China’s 70 major cities rose 0.3 per cent in November from the previous month, lower than growth reported in October and marking the weakest growth since February 2018, Reuters calculated from official National Bureau of Statistics (NBS) data on Monday.
On an annual basis, average new home prices in China’s 70 major cities rose 7.1 per cent in November, slower than the 7.8 per cent rise in October.
Only 44 of the 70 cities surveyed by the NBS reported monthly price increases, compared with 50 in October.
China has clamped down on property speculation since 2016 to contain a bubbly market, tightening its grip on domestic and onshore financing. Analysts noted some developers will likely ramp up sales promotion and slash prices towards the end of this year to boost revenue, although a drop in home prices would likely not be tolerated by local governments.
Price trends have remained mixed, with some cities showing signs of rapid cooling while others remain vulnerable to overheating.