Correct: China Sep Housing Data Show Contrasting Price Trends

--Data Show Price Growth Slowing in Some Cities in Sep, But Accelerating In

Others

--Corrects Breakdown Among Different City Tiers

     New China housing price data for September released by the National Bureau

of Statistics show two contrasting trends in September, with fewer cities

showing housing price growth on a month-on-month basis but more cities showing

accelerating prices on the month. 

     The data suggest that government curbs on price growth are working in many

of the 70 cities surveyed by the NBS. But price pressures remain strong in other

cities, particularly the largest Tier-1 cities, suggest existing curbs need to

be strengthen or, in smaller cities, need to be implemented for the first time. 

     Housing prices rose in 44 out of the 70 cities surveyed on a month-on-month

basis in September, according to MNI calculations based on the NBS data, a

further decline from the 46 cities reporting rises in August and 56 in July.

     New home prices, excluding subsidized housing, fell in 18 cities

month-on-month, the same number as in August. Prices were unchanged in eight

cities, compared with six the month before, MNI calculations showed. 

     But housing price growth decelerated in 38 of the 70 cities on a

month-on-month basis in September, well below the 53 in August, according to MNI

calculations based on the NBS data. The cities showing decelerating price growth

included two of four Tier-1 cities, 15 of 31 Tier-2 cities and 21 in 35 Tier-3

cities.

     Housing price growth accelerated month-on-month in 30 cities, doubling the

15 in August, according to MNI calculations, led by Tier-2 and Tier-3 cities.

Price growth accelerated in two of the four Tier-1 cities, 15 of the 31 Tier-2

cities and 13 of the 35 Tier-3 cities in September.

     On a year-on-year basis, new home prices rose in 67 cities, down from 68 in

August. Housing price growth decelerated in 49 of the 70 cities y/y in September

compared with 42 in August. Price growth accelerated in the other 16 cities.

Price growth unchanged in five cities. 

     The cities showing y/y price growth deceleration included four Tier-1

cities, 20 of 31 the Tier-2 and 25 of 35 Tier-3 cities. Nine Tier-2 city showed

price growth acceleration on a y/y basis in September, along with seven 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; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com

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

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: beijing@mni-news.com

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