China’s July housing data showed
price gains for new homes in the largest number of cities this
year, as buyer sentiment improved after interest rate cuts and
incentives for first-home buyers.
Prices climbed from a month earlier in 49 cities out of the
70 the government tracks, the National Bureau of Statistics said
on its website today. Prices fell in nine cities from June and
were unchanged in 12 cities.
Buyers, buoyed by two interest-rate cuts since June, have
shrugged off government pledges to maintain real-estate curbs
started two years ago to ensure housing remains affordable.
China’s Premier Wen Jiabao said easing inflation allows more
room to adjust monetary policy and positive signs are emerging
in the economy, the official Xinhua News Agency reported this
week.
“Today’s data shows demand from first-home buyers is very
strong and the interest-rate cuts had a big impact on the
market,” said Shen Jianguang, chief Asia economist at Mizuho
Securities Asia Ltd. in Hong Kong. “The government may issue
new tightening measures, but they would be mild because it’s
facing a big dilemma of balancing economic growth and property
curbs.”
The government sent eight teams to 16 provinces to check on
the implementation of property curbs, and the nationwide
inspection is aimed at “firmly” restraining property
speculation and consolidating results of the curbs, Xinhua said
on July 24, citing a State Council statement.
Buying Restrictions
As part of its crackdown, China has raised down-payment and
mortgage requirements, imposed a property tax for the first time
in Shanghai and Chongqing, increased building of low-cost social
housing, and placed home purchase restrictions in about 40
cities.
About 30 Chinese cities have issued “fine-tuning”
policies since the second half of 2011, according to Centaline
Property Agency Ltd. Yangzhou introduced home subsidies, Beijing
allowed some discounts on mortgages for first-home buyers and
Shanghai raised the tax threshold on purchases of some homes.
Data from SouFun Holdings Ltd. (SFUN), the nation’s biggest real-
estate website owner, showed the housing market continued to
pick up in July, with prices posting the biggest gain in more
than a year.
To contact Bloomberg News staff for this story:
Bonnie Cao in Shanghai at
bcao4@bloomberg.net
To contact the editor responsible for this story:
Andreea Papuc at
apapuc1@bloomberg.net
