House prices in 70 major cities in China continued to grow on a year-on-year basis and month-to-month basis in July, according to latest data from the National Bureau of Statistics (NBS). The number of cities where house prices record gains increased to 65.
House prices increased mainly in in second- and third-tier cities. Analysts believe that cities that saw remarkable growth are expected to enhance regulation.
According to the statistics of the NBS, compared with June, among the 70 major cities in July, there were 65 cities that see rising prices of new commercial housing. The number of cities with rising house prices is increasing, while the number of cities with falling house prices is decreasing. In July, only house prices in Shanghai, Nanjing, and Quanzhou fell slightly by 0.1 percent.
According to CRIC, the price of new homes in July increased by 1.2 percent from previous month, up from the 1.1 percent in June, a new high in 22 months. The price of new homes rose by 6.6 percent year-on-year, up 0.8 percentage points from June.
“The sales price of new commercial residential buildings in first- and second-tier cities has declined from the previous month, and that in third-tier cities has expanded slightly,” said Liu Jianwei, senior statistician of the Urban Bureau of the National Bureau of Statistics.
In July, the sales prices of new commercial residential buildings in four first-tier cities rose by 0.2 percent from the previous month, and the growth rate dropped by 0.4 percentage points from the previous month. Among them, the price of Shanghai declined, and the price in Beijing, Guangzhou and Shenzhen rose by 0.2 percent, 0.6 percent and 0.5 percent respectively.
House prices rose mainly in second- and third-tier cities. Sanya, Jinan, Kunming, Yantai and Yichang led the gain, with a month-on-month increase of more than 2 percent.
Centraline Property analyst Zhang Dawei said that since August, more than 25 cities have issued various regulatory policies, and it is expected that the trend of regulation will accelerate.
CRIC researcher Shen Xin said that in the background, it is expected that the regulation in the second half of the year will remain coherent with the first half of the year, and the regulation of some hot cities will continue to tighten. The upward trend in the 70 cities will be difficult to continue and will cool down.
In Shen's view, the land price increase in July was lower than the price increase for the first time. As the land price increase continued to narrow, it is expected that the average price of commercial housing sales in the next year will also narrow.
Translated by Coral Zhong