Home Prices Continues to Cool Down the Property Market
Homes prices have increase in a much slower pace for the month of April, indicating that there is still a cooling down of prices in the country’s property market. Prices for new homes in major cities have increase by almost 7 percent compared to the same period last year, which eased from an increase of 8 percent for the month of March. During that time was considered as the slowest rise for 14 months and marked the sixth consecutive month of the prices slowing down.
Also in a separate survey conducted by the China Real Estate Index System have shown that the average prices of homes in the hundred biggest cities have only increased by 0.1 percent versus the 0.4 percent increase in March. Compared to a year earlier where home prices have increased by 9 percent in April then moderated from a ten percent gain in March which marked the fourth consecutive month of slowing down of the year on year gains.
A slower and broader economy along with a tighter credit conditions in the industry accompanied with rising expectations from local governments that will loosen property controls that is combined to help dampen home price growth in April. Nanning in Southern Guangxi in China have also eased on their rules on home buying as the city is looking to boost local economy showing speculations that this could be a series of local support measures.