China's Home Prices Growth Fastest In 5 Months - NBS
According to Reuters calculations based on National Bureau of Statistics data, new home prices in China rose at their fastest pace in five months in May, complicating government efforts to keep frothy housing markets under control as it rolls out more stimulus for the slowing economy. Average new home prices in China's 70 major cities rose 0.7% in May from the previous month, picking up from a 0.6% rise in April and the quickest pace since December. That marked the 49th straight month of price gains. Sixty-seven of the total 70 cities surveyed by the NBS reported higher prices in May, the same as April.
On an annual basis, home prices increased 10.7% in May, unchanged from April's growth rate.
Beijing has repeatedly urged local governments to keep runaway prices under control, but a recent easing in credit conditions, pent-up demand for housing, and an implicit government mandate to prevent a collapse have kept the market surprisingly resilient. But further curbs on home buyers would risk adding to pressure on China's economy, which has seen sales slowing due to weaker domestic demand and an escalating trade war with the United States.
Data last week showed the biggest drop in property sales in nearly two years in May, and markedly slower growth in investment and new construction starts, pointing to further economic weakness ahead and more government growth boosting measures.
Zhang Dawei, a Beijing-based analyst of property consultancy Centaline, wrote in a note "If the market becomes overheated policymakers will definitely rush to regulate it.
Source : Reuters