China: Gains in house prices moderate again in December
January 18, 2017
House prices in 70 large- and medium-sized Chinese cities rose 0.3% in December from the previous month, according to a weighted average index calculated by Thomson Reuters from data issued by the National Bureau of Statistics (NBS). The print was below the 0.6% increase observed in the previous month and marked a 12-month low. According to the NBS, the sale price of newly-constructed residential buildings declined in 18 cities, increased in 46 cities and remained flat in 5 cities.
House prices rose 12.4% annually in December, which was slightly below November’s record-high of 12.6%. In the full year 2016, house prices rose 7.2%, which contrasted the 3.2% decline in 2015.
The implementation of home purchase restrictions and higher mortgage down payments by the end of September and early October in some top-tier cities is causing house prices to decelerate.