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China home prices drop for fifth month
China home prices drop for fifth month
| Published: | 19 Mar at 6 PM |
China home prices drop for fifth month
Property prices in the majority of Chinese cities have dropped for a fifth month in a row, underpinning the success of the government in curbing the market speculation, according to the BBC.
In February, the prices of new homes in 45 of 70 cities dropped compared to January, revealed the National Bureau of Statistics (NBS) on Sunday. Some 48 cities saw prices decline in January in comparison with December.
Chinese leaders have said that prices are still too high and property controls are set to remain in place. Last week, Chinese Premier Wen Jiabao said that home prices remain way above a reasonable level, adding that they must not relax tightening.
Chinese property prices increased in 2008 as a result of a stimulus package following the global economic crisis. In 2011, the government introduced measures to prevent the formation of asset bubbles – including limits on the amount of houses people are permitted to own, property taxes in certain cities and higher deposits.
Analysts claim these firm policies would result in a further drop in property prices in 2012. Asset consultancy EC Harris’s Mark Budden said that property prices in China will likely stay on a downward trend into the second half of this year and until policies are adjusted.
Home prices declines in year-on-year terms were seen in 27 Chinese cities last month in comparison with 14 cities the previous month, said the NBS. Last year the ministry stopped releasing its nationwide home price index, and now only publishes data on specific cities.
Property prices in the majority of Chinese cities have dropped for a fifth month in a row, underpinning the success of the government in curbing the market speculation, according to the BBC.
In February, the prices of new homes in 45 of 70 cities dropped compared to January, revealed the National Bureau of Statistics (NBS) on Sunday. Some 48 cities saw prices decline in January in comparison with December.
Chinese leaders have said that prices are still too high and property controls are set to remain in place. Last week, Chinese Premier Wen Jiabao said that home prices remain way above a reasonable level, adding that they must not relax tightening.
Chinese property prices increased in 2008 as a result of a stimulus package following the global economic crisis. In 2011, the government introduced measures to prevent the formation of asset bubbles – including limits on the amount of houses people are permitted to own, property taxes in certain cities and higher deposits.
Analysts claim these firm policies would result in a further drop in property prices in 2012. Asset consultancy EC Harris’s Mark Budden said that property prices in China will likely stay on a downward trend into the second half of this year and until policies are adjusted.
Home prices declines in year-on-year terms were seen in 27 Chinese cities last month in comparison with 14 cities the previous month, said the NBS. Last year the ministry stopped releasing its nationwide home price index, and now only publishes data on specific cities.
