Chinas home prices to stabilize

CNC
Added On May 19, 2017

Official data show that China's property market in major cities continue to stabilize after authorities implemented a string of measures to contain price hikes. 
 
According to the National Bureau of Statistics, of the 70 large and medium-sized cities surveyed, 30 cities witnessed a slower price rise year on year in April. 
 
It noted that a total of 31 cities witnessed a month-on-month price decline or a slower price uptick in April.  
 
Among the 15 first-tier and second-tier cities surveyed, nine cities saw a month-on-month price decline or flat prices in April and five saw price gains of less than 1.1 percentage points.
 
In Beijing, new residential house prices rose 0.2 percent month on month in April, while Shanghai prices fell 0.2 percent. House prices in Shenzhen, a southern metropolis neighboring Hong Kong, remained flat. 
 
Since October last year, the Chinese government has implemented a slew of measures to cool fast growth in housing prices, including restrictions on home purchases and increased minimum down-payment requirements.
 
The latest round of restrictions came after more than two years of policy easing, starting with relaxation of purchase restrictions in 2014 and fueled by the pro-growth policies, including interest rate cuts. 
 
Many third-tier and fourth-tier cities have excess supply in their real estate markets.