MNI DATA IMPACT: China Home Prices Decelerate in July

     BEIJING (MNI) - The pace of residential property price rises in 70 large

and medium sized Chinese cities eased in July as local governments enacted

policies to stabilize the property market, data from China's National Bureau of

Statistics (NBS) showed on Wednesday.

     --The average price of new homes in 70 major cities, excluding subsidized

units, slowed for a third month to 10.1% y/y in July from the previous 10.8% y/y

growth, marking the smallest increase so far this year. On a m/m basis, the

average price was up 0.6% in July, down from the 0.7% growth in June.  

     --Less cities were reporting rising housing prices in July - of 70 cities

surveyed, prices rose in 60 compared with 63 the previous month. On a yearly

basis prices have risen in all 70 cities.  

     Table: China Residential Property Prices - No. of cities where prices are

rising/falling

No. Cities Rising/Falling                 Jul  Jun  May  Apr  Mar  Feb  Jan  Dec

--------------------------------------------------------------------------------

70-Large and medium Cities M/M      Rise   60   63   67   67   65   57   58   59

                                    Fall    3    5    2    2    4    9    8    8

                                Net Rise   57   58   65   65   61   48   50   51

70-Large and medium Cities Y/Y      Rise   70   70   70   70   70   69   68   69

                                    Fall    0    0    0    0    0    0    2    1

                                Net Rise   70   70   70   70   70   69   66   68

     Source: MNI - MNI Calculations based on NBS data 

     --Prices of established homes, a better gauge of property market activity,

fell in one of four tier-1 cities month-on-month and rose in 22 of 31 tier-2 (VS

21/31 in June) and 26 of 35 tier-3 cities (VS 24/35).  

     --New home prices in Hohhot, the capital of China's north Inner Mongolia,

registered the fastest yearly gain at 21.7%. Luoyang, a tier-3 city in central

Henan Province, posted the first month-on-month gain for a second month of 1.5%.

     --Property investment in the Chinese market amounted to CNY7.28 trillion in

the first seven months this year, or a 10.6% y/y growth. Investment in western

China recorded the highest increase, up by 15.1%, according to the latest data

from the bureau.

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: flora.guo@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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