China: Growth in house prices accelerates in June
House prices in 70 large- and medium-sized cities increased 0.6% in June in month-on-month terms according to a weighted average index calculated by Refinitiv from data issued by the National Bureau of Statistics (NBS). The print exceeded the 0.5% rise in May. According to the NBS, the sale price of newly constructed residential buildings increased in 61 of the 70 cities (57 in May).
House prices increased 4.9% annually in June, matching May’s result. Annual average growth in house prices fell from 7.2% in May to 6.7% in June.
Putting June’s reading in context, Ting Lu, Lisheng Wang and Jing Wang, economists at Nomura, noted:
“Recently announced tightening measures by some local housing authorities, including in Shenzhen and Ningbo, reflected rising policymaker concerns over a potential property bubble. However, the absence of the property sector in Beijing’s demand stimulus package could prolong the path to a full economic recovery.”