Home Prices has Seen a Month on Month Decline since December
More Chinese cities have seen their home prices dropped month on month since January which shows sign that there is a gradual cooling down in the property sector. In a pool of data gathered from 70 major Chinese cities 62 seen a month on month increase in new home prices, and prices in six cities has declined and only two cities saw a month on month decrease in new home prices in December.
Average month on month price increase for new homes have slowed a little to .49 percent from .51 percent in December as average prices in the four first tier cities has slowed by .1 percent from December. Prices of existing homes have also seen a trend of moderation with 13 cities has experience decline month on month higher from five cities in December. Analyst have also said that the moderation was partly due to a series of government measures that was implemented to stabilize market expectations ranging from increase in supply of affordable housing to control measures. Tighter credit is also one of the reasons in the narrow price gains.
Since the start of the year several commercial banks in China has seen tighter lending in its property sector after they were hit by severe liquidity crunches. One bank has even ordered its local branches to suspend loans in several sectors until the end of March this includes property development projects in the cement, steel, construction and other property related sectors.