China Real Estate Market Recovery Slows in October
- New home prices rose in 27 out of 70 cities surveyed in October vs 39 in September
- Prices rose 6.5% and 10.9% year-over-year in Beijing and Shanghai respectively
- Impact of Chinese housing market stimulus measures may be starting to wane
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New Home prices in October rose 0.6 percent month-over-month in Beijing and 1.8 percent month-over-month in Shanghai. The yearly changes for the two cities were 6.5 percent and 10.9 percent respectively. Out of the 70 cities that are surveyed, 27 saw new real estate prices inflate as opposed to 39 in September on a monthly basis. Thirty-three cities had their property values decline and 10 saw no change.
China has taken a number of policy measuresin an effort to prop up the housing market. The PBOC has cut interest rates six times in a span of twelve months, the down-payment ratio has been cut by five percent and the minimum down-payment for first-time buyers was cut by 5 percent. Comparing October’s figures to that of the previous month hints the impact of stimulus may be waning, though a single month of data is almost certainly insufficient to say so with certainty.
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