China: Smaller cities lead April’s acceleration in house prices
House prices in 70 large- and medium-sized cities rose 0.5% in April 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 March’s 0.4% increase and represented the highest reading in 10 months. According to the NBS, the sale prices of newly constructed residential buildings increased in 58 cities (55 in March).
Investors are shifting their focus towards second and third tier cities, where there have been no purchase restrictions and prices remain low.
House prices rose 4.7% annually in April, easing from a 4.9% increase in March and marking an over two-year low. Annual average growth in house prices fell to 6.7% in April from 7.2% in March, marking the lowest level since November 2016.