Moderation in Housing Prices Indicates Cooling Down of Property Market
A recent private survey has shown that the gains in home prices in China has moderated for the month of February indicating signs of cooling down of the country’s property market as the government implemented measure appears to be working. Prices of new homes in more than 200 major cities has increased by 9.08 percent compared to a year earlier showing an ease from January 9.39 percent increase. This was the slowest gain in ten months and marks the fourth consecutive month of annual ease gains.
Also in a separate survey by the China Real Estate Index System have showed average prices in 100 of the biggest cities has increase by 0.54 percent in February and posted a 21 straight month gain. From a year earlier home prices in February increased by 10.8 percent on average, moderating from a 11.1 percent annual gain in January which marked the second consecutive month of easing annual gains.
The backdrop of the slowing down of the economic growth along with no signs of the credit environment loosening, the housing market cooled a little during the slack season. This only proves that the Chinese property market is showing signs of losing steam since 2013