China’s Sept new home prices up

BEIJING: China´s new home prices increased at a firm pace in September, supported by gains in smaller cities and showing the market remained resilient despite pressures from softer investment, a slowing economy and government curbs on the sector.

Average new home prices in China´s 70 major cities rose 0.9 percent in September from a month earlier, Reuters calculated from official data published on Saturday, slower than the previous month´s reading of 1.4 percent, which was the fastest growth in two years.

Compared with a year ago, however, new home prices climbed 7.9 percent, the quickest year-on-year gain since August 2017 and faster than the previous month´s 7 percent rise.

Prices continued to rise despite tougher curbs designed to rein in a near-three-year real estate boom that has spilled over from megacities to the hinterland.

In a sign of continued broad-based market strength, 64 out of the 70 cities surveyed by the National Bureau of Statistics (NBS) reported a monthly price increase for new homes, though the number was down from 67 in August.

While solid growth in the sector could cushion the impact of a vigorous multi-year government crackdown on debt and escalating trade tensions with the United States, it could also stoke fears of a bubble if prices climb aggressively.

Real estate has been one of the few bright spots in China´s investment landscape, partly due to robust sales in smaller cities where a government clampdown on speculation has not been as aggressive as it has in larger cities.