China: Housing market continues to decelerate in December
January 15, 2021
House prices in 70 large- and medium-sized cities increased 0.1% in December 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 matched November’s reading, and was the joint-weakest result since March. Tier-1 cities such as Beijing, Shanghai, and Guangzhou led the overall increase in house prices.
House prices increased 3.8% annually in December, below November’s 4.0% rise. Annual average growth in house prices fell from 5.1% in November to 4.9% in December.
Looking ahead, the housing market is likely to lose some momentum this year due to the impact of recent government measures to limit financial risks—including limits on property loans—notwithstanding a stronger domestic economy.
Author: Oliver Reynolds, Economist