China's Home Prices Rise in Fewest Cities Since January 2016Bloomberg News
Values gained in 44 cities in September, versus 46 in August
Home sales data showed first year-on-year drop in 30 months
China home prices rose in the fewest cities since January 2016, adding to signs of a property slowdown as curbs on buyers bite.
New-home prices, excluding government-subsidized housing, in September rose in 44 of 70 cities tracked by the government, compared with 46 in August, the National Bureau of Statistics said on Monday. Prices fell in 18 cities from the previous month and were unchanged in eight.
Stabilizing home prices in the nation’s largest cities are a welcome sign for Communist Party leaders gathered in Beijing to map policy for the next five years. President Xi Jinping renewed a yearlong call that homes are built “to be inhabited’’ and not for speculation in his speech at the twice-a-decade Party Congress, inking the language in one of the nation’s top policy frameworks.
Data last week showed home sales last month fell from year-earlier levels for the first time since March 2015, declining 2.4 percent by value, and 5.7 percent by area, according to Bloomberg calculations.
Xi’s speech showed “that instead of easing, we are more likely to see more tightening during or after the party congress,” Alan Jin, a property analyst at Mizuho Securities Asia Ltd. said before the data release.
Home prices fell 0.5 percent in southern Guangzhou, the second consecutive monthly fall. Values in Shanghai and in Beijing declined 0.1 percent and 0.2 percent respectively. In Shenzhen, prices were unchanged.
A Bloomberg Intelligence index of Chinese real-estate owners and developers fell when the property-price data were released, but later bounced back, up 0.5 percent as of 11:15 a.m. local time.
— With assistance by Emma Dong, and Eric Lam