China New Home Price Growth Continued to Decelerate In July

     BEIJING (MNI)  - New home prices in China rose in 56 out of 70 cities on a

month-on-month basis in July, the National Bureau of Statistics reported Friday,

down from the 60 cities reporting rises in June and matching the 56 in May.

     New home prices prices, excluding subsidized housing, fell in nine cities

month on month, compared with six in June. Prices were unchanged in five cities,

compared with four the month before, the NBS said.

     On a year-on-year basis, new home prices rose in all 70 cities, the same as

in June.

     Housing price growth decelerated in 46 of the 70 cities in July on a

month-on-month basis, compared with 37 in June. The cities showing decelerating

price growth m/m included three of four Tier-1 cities, 21 of 31 Tier-2 cities

and 22 of 35 Tier-3 cities, according to MNI calculations.

     Housing price growth accelerated month-on-month in 24 cities, compared with

32 cities last month. 

     On a year-on-year basis, housing price growth decelerated in 31 of the 70

cities in July compared with 21 in June. Price growth accelerated in 37 cities,

compared with 47 cities last month.

     Of the cities showing y/y price growth decelerations, three were in Tier-1

cities, 17 were in Tier-2 and 11 were in Tier-3 cities.

     Numerous Chinese cities, mostly Tier-1 and Tier-2, have enacted new

restriction on the housing market since October last year to combat the sharp

rise in housing prices. The central government has also sought to tighten

regulation of property financing to limit housing speculation.

--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

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