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China property inflation eases in November - surveys
December 2, 2013 / 10:00 AM / in 4 years

China property inflation eases in November - surveys

BEIJING, Dec 2 (Reuters) - China’s property inflation eased slightly in November, two private surveys showed, offering initial signs that recent measures imposed by some local authorities could help cool a red-hot real estate sector.

Prices of new homes in 288 major cities in November rose 0.77 percent from the previous month, easing from a monthly rise of 0.83 percent in October, according to a poll released on Sunday by E-House China EJ.N, a real estate services firm.

House prices climbed 10.1 percent year on year, also slowing slightly from October’s annual rise of 10.5 percent.

A separate survey by China Real Estate Index System (CREIS) showed average prices in the 100 biggest cities rose 0.68 percent in November from October, marking the weakest monthly gain so far this year.

“In terms of property policies, the central government is shifting away from the one-size-for-all solution and we can see more and more cities have launched tailor-made measures to curb home prices,” CREIS, a consultancy linked to China’s largest online property information firm Soufun Holdings, said in a statement.

“These measures help quench bullish sentiment in the market,” the statement said.

Many local governments have recently rolled out measures to cool fast-rising home prices, such as raising minimum down payments for second homes and promising to supply more land for building residential properties.

Such cities include first-tier cities of Beijing, Shanghai and Shenzhen as well as second-tier cities, such as Nanjing, Xiamen, Nanchang and Shenyang.

Despite a nearly-four-year campaign to calm a bubbling property market, ordinary Chinese in most cities are still facing relentlessly rising home prices that are well beyond their reach.

This has been adding to the threat of a price bubble and social unrest as housing becomes increasingly unaffordable

In China’s 10 most expensive cities, including Beijing and Shanghai, average home prices rose 1.16 percent on the month and 16.56 percent on the year, the CREIS survey showed.

Following a four-day conclave that ended in mid-November, China’s top leaders pledged to speed up legislation to launch a long-awaited property tax in the nation, in a signal that Beijing would rely more on market forces rather than administrative measures to control the property market.

China is due to publish official home price data for 70 major cities for November on Dec. 18.

Official data showed China’s property prices surged to record highs in October.

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