[China]Latest 70 city house prices announced! Here comes the interpretation →
Kang Shu, Economic Daily
The National Bureau of Statistics announced on June 16 the changes in the sales prices of commodity residential units in May 2022. Data show that in May, 70 large and medium-sized cities commodity residential sales price maintain the continuation of the decline month on month, but the decline tends to slow down, the number of new commodity residential ring than the decline in the number of cities decreased.
The National Bureau of Statistics City Division chief statistician Sheng Guoqing introduced, the number of cities whose new commodity residential sales prices fells has decreased, the second-hand residential sales prices were flat or fell. In May, 70 large and medium-sized cities, new commodity residential sales prices fell m-o-m in 43 cities, a decrease of 4 than last month. From each tier of cities, in May, the sales price of new commodity residential units in first-tier cities rose 0.4% m-o-m, an increase of 0.2 percentage points over that of the previous month; second-tier cities fell 0.1%, the same rate as last month; third-tier cities fell 0.3%, a decrease of 0.3 percentage points narrower than last month.
In May, among the 70 large and medium-sized cities, there were 53 cities where the sales prices of second-hand residences fell from the previous month, an increase of 3 cities from the previous month. From each tier of cities, in May, the first-tier cities second-hand residential sales prices ring from the previous month rose 0.4% to flat; second-tier cities ring down 0.3%, the same rate of decline as last month; third-tier cities ring down 0.5%, the rate of decline than last month to expand 0.2 percentage points.
Sheng Guoqing introduced that the year-on-year increase in the sales price of new commercial residential units and second-hand residential units in each line city fell back or the rate of decrease expanded.
In May, 70 large and medium-sized cities, new commodity residential and second-hand residential sales prices fell year-on-year in 46 and 57 cities respectively, an increase of 7 and 1 respectively over the previous month.
In May, the sales prices of newly built and second-hand residential units in first-tier cities rose by 3.5% and 1.7% year-on-year, down by 0.4 and 0.7 percentage points respectively from the previous month. Sales prices of new commercial residential units in second-tier cities rose 0.3% year-on-year, down 0.7 percentage points from the previous month; sales prices of second-hand residential units fell 1.7% year-on-year, down 0.7 percentage points from the previous month. The sales price of new commercial residential and second-hand residential in third-tier cities fell by 2.2% and 3.2% year-on-year respectively, with the rate of decline expanding by 0.7 percentage points over the previous month.
The reporter combed through the table and found that, specific to the city, new commodity residential sales prices fell more than the ring of cities: Zhanjiang fell 1.3%, Nanchong fell 1.2%, Xining fell 1.1%, Wuhan, Beihai, Luzhou were down 0.8%; more cities rose: Chengdu rose 0.9%, Urumqi rose 0.7%, Jinan, Guangzhou, Shenzhen, Haikou were up 0.5%, Beijing up 0.4%.
Second-hand residential sales prices fell by 1.8% in Jilin, 1.6% in Changchun, 1.3% in Mudanjiang, and 1.2% in Lanzhou, Tangshan and Zhanjiang. The cities with more increases were: Chengdu up 0.9%, Wuxi up 0.8%, Taiyuan and Nanchong both up 0.6%.
In response to the May data and the current real estate market situation, Xu Xiaole, chief market analyst at Shell Research Institute, believes that the decline in new house prices narrowed in May from a year earlier, with the number of falling cities decreasing. The improvement in prices is the result of improved volumes, with the latest National Bureau of Statistics data showing that the national sales area and sales of new commercial residential units increased in May for the first time in the year, while investment and new construction also both increased in the same month. The positive changes on the sales and investment side brought about a narrowing of the year-on-year price decline.
For the current adjustment of policies related to the real estate market around the world, Zhang Dawei, chief analyst of Centaline Property, believes that more and more cities are introducing measures to stabilize the real estate market regulation, not only the third and fourth tier cities, some second tier cities have also introduced new initiatives, and hotspot cities such as Chengdu, Hangzhou, Xiamen and Nanjing have joined the ranks of stabilizing the property market. Many cities have released policies more than once, and the content of the policies has been increasing.
Xu Xiaole believes that local policy support is still being strengthened since June, and policies such as financing support and risk relief at the housing enterprise end are being further implemented. It is expected that the policy effects on both the supply and demand side will continue to be released in the latter part of the year, continuing to benefit market transactions. Zhang Dawei believes that the market has gradually stabilized signs, stable property market initiatives to give confidence to some city home buyers. But further stabilization of the property market also depends on the stability of the epidemic and people's greater confidence in the future market.