China: Growth in house prices jump to nearly one-year high in May
June 15, 2018
House prices in 70 large- and medium-sized cities rose 0.7% in May in month-on-month terms according to a weighted average index calculated by Thomson Reuters from data issued by the National Bureau of Statistics (NBS). The print was up from April’s 0.5% increase and represented the highest reading in 11 months. According to the NBS, the sale prices of newly constructed residential buildings increased in 61 cities (58 on April).
Data suggests that investors are shifting their focus towards second and third tier cities, where there have been no purchase restrictions and prices remain relatively low. Dandong, a city bordering North Korea, recorded the fastest price increase for the second consecutive month in May on the back of easing tensions on the Korean peninsula.
House prices rose 4.7% annually in May, matching the previous month’s result. Annual average growth in house prices fell from 6.7% in April to 6.2% in March, marking the lowest level since November 2016.