China Housing Prices Rise to 14-Month High

highlights five key points from data on housing prices
released by China’s National Bureau of Statistics (NBS) on Saturday:

– The average price of new homes in 70 major cities, excluding subsidized
units, increased 8.9% y/y in September, up from 8.0% gain in August, the biggest
rise since July 2017, according to MNI calculations.

– There were less cities reporting housing price increases on a monthly
basis than in the previous month. Out of the 70 cities, 64 had housing prices
gaining, compared with 67 in the previous month.

Table 1: China Residential Property Prices – No. of cities where prices are
rising/falling

No. Cities Rising/Falling Sep Aug Jul Jun May Apr Mar Feb
——————————————————————————–
15-Top cities M/M Rise 11 12 11 10 9 8 6 1
Fall 2 1 2 2 5 7 7 12
Net Rise 9 11 9 8 4 1 -1 -11
70-Large and medium Cities M/M Rise 64 67 65 63 61 58 55 44
Fall 3 1 3 4 7 10 10 16
Net Rise 61 66 62 59 54 48 45 28
15-Top cities Y/Y Rise 12 13 11 8 7 5 6 5
Fall 2 2 4 7 8 10 9 9
Net Rise 10 11 7 1 -1 -5 -3 -4
70-Large and medium Cities Y/Y Rise 67 68 65 61 62 59 60 59
Fall 2 2 4 9 8 10 10 9
Net Rise 65 66 61 52 54 49 50 50
Source: MNI – MNI Calculation based on NBS data

– Gains in housing prices in the top 15 cities narrowed in August. The
average price of 15 cities rose 0.4% m/m, a 5-month low, in line with the 70
cities’ average price. On y/y basis, price rose 3.6%, accelerating from 2.9%
gain in the previous month, and was the most increase since August 2017.

Table 2: China Residential Property Prices – Average Price Increases

Average Price Chg % Sep Aug Jul Jun May Apr Mar Feb
————————————————————————–
15-Top cities M/M 0.4 1.1 0.8 0.9 0.5 0.0 0.0 -0.2
Y/Y 3.6 2.9 1.6 0.8 0.0 -0.5 -0.4 0.0
70-Large and medium Cities M/M 1.0 1.5 1.2 1.1 0.8 0.6 0.4 0.2
Y/Y 8.9 8.0 6.6 5.8 5.4 5.3 5.5 5.8
Source: NBS

– The y/y increase in average price was mostly contributed by tier-2 and
tier-3 cities – 30 out of 31 tier-2 cities and all 35 tier-3 cities all reported
prices rise. Among four tier-1 cities, prices in two gained, one fell and one
was unchanged.

– New-home price in Xi’an, capital of northwestern province Shaanxi, came
at first place on a monthly basis with 6.2% gain. On y/y basis, Haikou, capital
of tropical Hainan province, recorded the most gain of all cities again at
21.7%. The beach city benefited from a policy announced in April calling for
further opening up of the island in the South China Sea to foreign investment .