China: House prices expand at record rate in September
October 20, 2016
House prices in 70 large- and medium-sized cities rose 2.1% in September 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 exceeded the 1.5% increase observed in the previous month and represented the strongest growth since records began in January 2011.
Compared to the same month last year, house prices jumped 11.2% in September. The print came in above the 9.2% increase recorded in August and marked the fastest expansion on record. Annual average variation in house prices rose from 4.2% in August to a two-year high of 5.2% in September.
As a result of the recent surge in house prices, more than 20 municipalities, particularly in top-tier cities, introduced home purchase restrictions and higher mortgage down payments by the end of September and early October. In order to assess the impact of these measures, the NBS unveiled a first ever half-month survey for 15 of the cities in question. According to the survey, the monthly pace of growth decelerated in all of the cities. For example, in Beijing, monthly growth fell from 4.9% in September to 1.2% in the first half of October, while in Shanghai, it declined from 3.2% to 0.7% in the same period.