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MNI 5 THINGS: China's New Home Prices Continued to Fall in Feb

MNI (Singapore)
By Flora Guo
     BEIJING (MNI) - The following are five things we have learnt from the
70-city housing price data released by China National Bureau of Statistics on
Monday: 
     - Average new home prices growth for 70 cities, excluding subsidised
housing rose 0.2% month-on-month in February, lower than the 0.3% growth in
January. It grew 5.8% year-over-year in February, 0.4 percentage point higher
than growth in January due to base effects. 
     - Price growth continued to cool in February, which shows the property
controls implemented by the Chinese government are taking effect and curbing
price growth. Among 70 large and medium cities, prices rose in 44 cities in
February m/m, compared with 52 in January, and fell in 16 cities last month,
compared with 13 in January. Overall, the net rise for 15 cities m/m expanded to
-11 from -2 in January. 
     Table: China Residential Property Prices - No. of Cities where Prices are
Rising/Falling
No. Cities
Rising/Falling             Feb  Jan  Dec  Nov  Oct  Sep  Aug  Jul  Jun  May  Apr
--------------------------------------------------------------------------------
15-Top cities m/m    Rise    1    5    8    4    3    0    0    5    6    6    6
                     Fall   12    7    4    7    9   11   12    7    5    6    5
                      Net
                     Rise  -11   -2    4   -3   -6  -11  -12   -2    1    0    1
70-Large and
medium cities m/m    Rise   44   52   57   50   50   44   46   56   60   56   58
                     Fall   16   13    7   10   14   18   18    9    6    9    8
                      Net
                     Rise   28   39   50   40   36   26   28   47   54   47   50
15-Top cities y/y    Rise    5    4    6    4    5   12   13   15   15   15   15
                     Fall    9   11    9   11   10    3    2    0    0    0    0
                      Net
                     Rise   -4   -7   -3   -7   -5    9   11   15   15   15   15
70-Large and
medium cities y/y    Rise   59   59   61   59   60   67   68   70   70   69   69
                     Fall    9   11    9   11   10    3    2    0    0    1    1
                      Net
                     Rise   50   48   52   48   50   64   66   70   70   68   68
     - The property market cooled down in 15 hotspot cities ('top cities') that
the NBS monitored. According to MNI calculations, average price growth for 15
cities fell 0.2% on a monthly basis, its first time in negative territory since
September last year. 
     Table: China Residential Property Prices - Average Price Increases
Average
Price Chg %        Feb   Jan  Dec   Nov  Oct   Sep   Aug   Jul   Jun   May   Apr
--------------------------------------------------------------------------------
15-Top
cities       M/M  -0.2   0.0  0.1   0.0  0.0  -0.2  -0.2   0.0   0.0   0.0   0.1
             Y/Y   0.0  -0.5  0.0  -0.2  0.3   2.1   6.9  11.1  13.6  16.2  19.0
70-Large
and medium
cities       M/M   0.2   0.3  0.5   0.4  0.3   0.2   0.2   0.5   0.7   0.8   0.7
             Y/Y   5.8   5.4  5.8   5.5  5.7   6.5   8.2   9.3   9.6   9.7   9.9
     Source: MNI - MNI Calculation from National Bureau of Statistics of China
     - More cities have seen a fall in home prices month-on-month - including
all four first-tier cities and 12 second- and third-tier cities. On a
year-over-year basis, it was the same case that less cities were increasing the
price with more had their price unchanged, a MNI calculation showed.
     - Cities in northeast and southwest China experienced rapid price growth in
February on a year-over-year basis, including Shenyang (+12.1%), Beihai
(+12.2%), Kunming (+11.4%), Nanchong and Harbin (both at +10.8%). On the other
hand, cities in southeast China have started on a downturn trend - Shenzhen
(-2.5%), Nanjing and Fuzhou (both at -1.5%) and Wuxi (-1.2%) are the four that
saw the largest decrease in February.
--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: flora.guo@marketnews.com
--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com
[TOPICS: MAQDS$,M$A$$$,M$Q$$$]

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