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China property market stable in March


S‍ource: CGTN    Published: 2018-4-18

According to China’s National Bureau of Statistics, new home prices rose in March from February in 55 cities among 70 major cities surveyed by the statistics authority. However, the change in prices was limited, ranging from 2.1 percent at the top to minus 0.4 percent in bottom. Meanwhile, prices in five cities remained unchanged and dropped in ten.

The pre-owned housing market showed similar patterns. Cities where prices rose outnumbered that with a decrease, while price changes were also limited to a narrow range between 2.1 percent to minus 0.6 percent.

Xu Xiaole, an analyst from Homelink, pointed out that the market in general is stable but still got some divergence, which is a rotation in increases. Xu said that prices dropped in cities where the markets surged during the last round of the boom. He added that the cities where markets stayed relatively calm saw an increase this time.

“Cities such as Dalian where the market was rather sluggish saw a significant increase. That`s because of a low comparative base,” said Xu.

Xu also pointed out that the capital city of Hainan Province was the top gainer in price growth. He said the housing market in the entire province could be worth some attention.

Meanwhile, Liu Zhiqin, senior fellow at the Chongyang Institute for Financial Studies at Renmin University of China, said the dropping momentum of home prices in first tier cities shouldn’t be a big worry and the decline was mainly thanks to seasonal reasons.

Liu said that there will be no continuing drop in the future and the market was predicted to be stable. He explained the trend was also partly because of recent tough regulations from the central government.

“Prices have to be lower in the moment, under the line where is managed and controlled, to stabilize the whole general situations,” said Liu, adding the temporary drop meets the interests of the central government and society.

Liu Zhiqin is a senior fellow of Chongyang Institute for Financial Studies of Renmin University.

Key Words: China   Property   Liu Zhiqin  

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