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MNI 5 THINGS: China's Housing Market Heats Up in July

     BEIJING (MNI) - The 70-city housing price data released by China's National
Bureau of Statistics (NBS) on Wednesday showed further upticks in the country's
housing prices. MNI highlights five major points:
     - The average new home price of 70 major Chinese cities accelerated both on
a monthly and yearly basis. The data, excluding subsidised housing units, grew
1.2% month-on-month, up from the 1.1% gain in June, MNI calculations show. It
rose significantly to 6.6% year-over-year from the 5.8% growth recorded in June.
July's housing price still shows a strong upward momentum, demanding that major
cities continue to curb speculative investments and implement more effective
regulation policies. 
     - More cities saw housing prices increase m/m and y/y. 65 out of the 70
cities the NBS monitored saw m/m housing prices rising, more than 61 in June.
Compared with a year ago, 68 cities saw y/y price growth, up from the 61
reported in June. The data show a bullish sentiment in China's real estate
market. 
     China: Residential Property Prices - No. of cities where prices are
rising/falling
No.
Cities
Rise/F      Ju  Ju  Ma  Ap  Ma  Fe  Ja  De  No  Oc  Se  Au  Ju  Ju  Ma
all          l   n   y   r   r   b   n   c   v   t   p   g   l   n   y  Apr  Mar
--------------------------------------------------------------------------------
15-Top
cities  Ri
M/M     se  11  10   9   8   6   1   5   8   4   3   0   0   5   6   6    6    9
        Fa
        ll   2   2   5   7   7  12   7   4   7   9  11  12   7   5   6    5    6
        Ne
        t
        Ri                      -1                  -1  -1
        se   9   8   4   1  -1   1  -2   4  -3  -6   1   2  -2   1   0    1    3
70-Lar
ge and
medium
Cities  Ri
M/M     se  65  63  61  58  55  44  52  57  50  50  44  46  56  60  56   58   62
        Fa
        ll   3   4   7  10  10  16  13   7  10  14  18  18   9   6   9    8    8
        Ne
        t
        Ri
        se  62  59  54  48  45  28  39  50  40  36  26  28  47  54  47   50   54
15-Top
cities  Ri
Y/Y     se  11   8   7   5   6   5   4   6   4   5  12  13  15  15  15   15   15
        Fa
        ll   4   7   8  10   9   9  11   9  11  10   3   2   0   0   0    0    0
        Ne
        t
        Ri
        se   7   1  -1  -5  -3  -4  -7  -3  -7  -5   9  11  15  15  15   15   15
70-Lar
ge and
medium
Cities  Ri
Y/Y     se  65  61  62  59  60  59  59  61  59  60  67  68  70  70  69   69   68
        Fa
        ll   4   9   8  10  10   9  11   9  11  10   3   2   0   0   1    1    2
        Ne
        t
        Ri
        se  61  52  54  49  50  50  48  52  48  50  64  66  70  70  68   68   66
     - Housing prices in the 15 largest cities diverged: on a monthly basis, one
more city experienced price growth in July than in June, while the number of
cities experiencing housing price falls remained unchanged; on an annual basis,
three fewer cities saw price drops than in July 2017, while three more cities
saw price increases.
     - Home price growth slowed down in Tier-1 and Tier-2 cities m/m, but was
faster in Tier-3 cities m/m. Four Tier-1 cities' new home prices grew 0.2% m/m,
0.6 percentage points down from the previous month, showing the effects of
stricter regulation and better tailored policies. Of the four Tier-1 cities,
Shanghai's new home price declined 0.1% m/m. Tier-2 cities growth dropped 1.1%
m/m, 0.1 percentage points down from June. New home prices accelerated 0.8
percentage points to a 1.5% gain in Tier-3 cities. 
     - Sanya, a major tourist city, topped the list in housing price growth at
3.7% y/y in July. It was followed by 2.9% growth in Kunming, a city in
southwestern China; and 2.3% in Haikou, capital of Hainan Province. These cities
benefit from good natural environments, looser housing purchase policies and
shantytown renovation policies. New home prices in Dandong city, a city that
borders North Korea, had seen 3.3% growth m/m in June, and it cooled down to
0.5% growth m/m in July, after the local government implemented multiple
regulation policies in June and July. 
--MNI Beijing Bureau; +86 (10) 8532-5998; email: sherry.qin@marketnews.com
--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com
[TOPICS: MAQDS$,M$A$$$,M$Q$$$]

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