China’s New Home Prices Rose at the Slowest Rate in 8 Months on Tightening Measures

Source: Reuters.

China’s new home prices increased at their slowest rate in months in August as authorities enhanced control in the property market and cooling measures were expected to limit growth in home prices. CSI 300 Index down -1.01%, CNY USD up +0.10%

• The average new home prices in 70 major cities increased by 0.2% last month after increasing 0.3% in July.
• New home prices jumped 4.2% in August from a year earlier, versus a 4.6% increase in July.
• Yan Yuejin, director of the Shanghai-based E-house China Research and Development Institution stated that the property market has slowed down significantly in the third quarter.
• Average new home prices rose at their slowest momentum since December after Beijing increased property restrictions this year, from capping banks’ lending to the sector to restrict purchases.
• The property market’s sharp recovery from the COVID-19 shock last year has increased concerns about financial risks. But a wide range of tightening measures are weighing on China’s important property sector.