-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI Podcasts -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
Commodities
Real-time insight of oil & gas markets
-
Credit
Credit
Real time insight of credit markets
-
Data
-
MNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
-
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessREPEAT: MNI: China Propty Mkt Sizzles, Demand Outpaces Supply
Repeats Story Initially Transmitted at 10:04 GMT Apr 18/06:04 EST Apr 18
--Property Investment and Prices Gain
--New Home Price Higher in 79% Surveyed Cities
--Strong Demand and Historic Low Inventory Boosted Price Gain Acceleration
BEIJING (MNI) - China's property market is heating up again -- and this
time it is clearly supported by both sides of the equation: rising demand and
shrinking supply.
A day after China reported its highest monthly property investment growth
in more than three years, official data released on Wednesday underlined the
resurgence in prices and sales in China's property market.
New home prices gained 0.4% on a monthly basis, 0.2 percentage point faster
than the pace of gain in February, with 55 out of the 70 surveyed cities or 79%
of the medium and large cities experiencing month-on-month price gains, MNI
calculations showed.
Despite China's much-touted two-year campaign to tame housing bubbles,
relatively strong performance of the property market shows the momentum has only
been pent up and further gains in prices seems inevitable.
China: Residential Property Prices - Average Price Increases
Avg
Pric
e Ch De Oc Jun
g % Mar Feb Jan c Nov t Sep Aug Jul e May Apr Mar Feb
--------------------------------------------------------------------------------
Top
15
Citi M/ -0. 0. 0. -0. -0.
es M 0.0 2 0.0 1 0.0 0 2 2 0.0 0.0 0.0 0.1 0.3 -0.1
Y/ -0. -0. 0. -0. 0. 11. 13.
Y 4 0.0 5 0 2 3 2.1 6.9 1 6 16.2 19.0 22.3 25.2
70
Citi M/ 0. 0.
es M 0.4 0.2 0.3 5 0.4 3 0.2 0.2 0.5 0.7 0.8 0.7 0.7 0.3
Y/ 5. 5.
Y 5.5 5.8 5.4 8 5.5 7 6.5 8.2 9.3 9.6 9.7 9.9 10.3 10.6
Source: MNI Calculation from National Bureau of Statistics of China data
--"GOLDEN MARCH"
Under policy curbs, price growth slowed 0.3 percentage point to 5.5% year
over year, the m/m growth in March was the highest since December at 5.8%. It
came in the so-called "Golden March and Silver April", referring to the period
when housing price and sales are supported by more buyers shopping for homes.
While the Chinese government issued 26 tightening policies in March, in
addition to 50 in the first two months, strong demand persisted according to
Centaline Group.
Residential property price growth in lower-tiered cities supported the
overall m/m price acceleration. MNI calculations showed 29 so-called tier-3
cities -- or smaller Chinese cities -- had price gains in March, compared with
23 in tier-2 capital cities and three in top-tier cities. It's worth noting the
number of smaller cities where housing prices increased could be higher, as not
all were included in the official stats.
--SHANTYTOWN RENEWAL
The shantytown urban renewal project championed by Chinese Premier Li
Keqiang served as another contributor. As the Chinese government directly
compensates residents whose homes were affected, a large number of home
purchasers with strong buying power enter the property market.
New home prices in top-tier cities, including Beijing, Shanghai, Guangzhou
and Shenzhen, regained upward momentum, up 0.1% month-on-month, compared with a
0.2 percentage point drop in February.
The faster price gain was partly due to higher-priced property projects
coming on line quicker than expected after the government eased restrictions on
the maximum prices of property units.
Finally, a historically low level of property inventory played a bigger
role on the supply side. According to the NBS, property inventories dropped
16.7% y/y at the end of March. Centaline Group data also showed inventory in the
same period reached the lowest level in 43 months.
--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com
--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.