China”s property market improves in November

China''s property market improves in November

BEIJING, Dec 18 — China’s real estate sector saw positive signs in November as new home prices rose monthly in an increasing number of surveyed cities, Xinhua News Agency reported Friday.

Of the 70 large- and medium-sized cities surveyed last month, new home prices climbed month-on-month in 33, up from 27 in the previous month, it quoted data from the National Bureau of Statistics (NBS).

Xinhua said according to NBS, 27 reported month-on-month price declines, down from 33 in October.

On a yearly basis, China’s housing market continued to warm in November, with 21 cities posting new home price increases, up from October’s 16.

New home prices surged 44.6% year-on-year in Shenzhen city, the sharpest increase last month among the country’s major cities.

Xinhua said prices for existing homes remained weak in November, but better than October as 16 cities reported month-on-month declines, down from 23 in October.

A total of 40 cities saw price increases, compared with 38 in the previous month, it said.

“The home price rises showed policy effects have sunk in,” it quoted NBS statistician, Liu Jianwei, as saying.

The central government has introduced several preferential policies, including interest rate cuts and eased downpayment requirements, to prop up the property market.

Home prices in top-tier cities and second-tier cities expanded their increases month-on-month in November, while prices held steady in third-tier cities.

China’s housing market took a downturn in 2014 due to weak demand and a supply glut. The cooling has continued into 2015, with both sales and prices falling and investment slowing.

To combat the housing market weakness and a broader economic slowdown, China’s central bank has cut benchmark interest rates five times since last November and lowered banks’ reserve requirement ratio three times since February.

China also lowered downpayment requirements for second-home purchases and some local governments have rolled back restrictions on home purchases. Following that, China’s housing sector saw recovery in summer and autumn with improving home prices.