China: Housing market is weak in December
January 17, 2022
House prices in 70 large- and medium-sized cities were down 0.2% month-on-month in December, according to a weighted average index calculated by Refinitiv from data issued by the National Bureau of Statistics (NBS). The print followed November’s 0.3% decline.
House prices increased 2.6% annually in December, down from November’s 3.0% increase. Annual average growth in house prices dipped from 4.2% to 4.1%. Other housing market indicators were also soft: Year-to-date growth in commercial building sales and property investment eased further in December. The decelerating housing market in recent months has been driven by the government’s measures aimed at boosting housing affordability and limiting speculation in the sector, as well as uncertainty generated by the precarious situation of many private property developers. Housing market momentum is set to remain soft ahead, notwithstanding the recent slight relaxation of the government’s property curbs and looser monetary policy.
Author: Oliver Reynolds, Economist