Real Estate

China home price growth climbs to 19-month high


The cost of new housing in large Chinese cities rose at a double-digit pace for the first time in more than a year and a half in January, the latest positive economic reading out of China at a time when other countries in the region are showing signs of growing strain.

Prices for new housing across 70 major cities rose 10 per cent year on year in January, according to a weighted average compiled by Reuters. That marked the quickest gain in 19 months. Only two of the cities – Shenzhen and Xiamen – saw home prices fall from a year ago, with other cities on the rise.

China’s property sector is estimated to account for 15 per cent of China’s gross domestic product, or closer to 30 per cent if related industries are included. 

The eight-month run of quickening price gains across major cities is welcome relief not only for policymakers in Beijing dealing with the country’s slowing economic growth but also for China’s debt-heavy property developers seeking to recoup investment from earlier deals made during the height of the previous rally, which peaked in late 2017.

In month-on-month terms prices rose 0.6 per cent on average, slowing from December’s pace but still coming in at double the pace of sequential growth seen in January 2017.



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.