New home transactions down 18% in Chinese cities in 2017: Survey

BEIJING - New home transactions in 50 Chinese cities declined 18 percent year-on-year in 2017 amid tough government curbs to rein in speculation, a private survey showed.

The annual figure came in after transaction volume of new commercial residential housing decreased for the 10th consecutive month in December 2017, which was down 13 percent year-on-year to 27.37 million square meters, according to statistics compiled by E-house China R&D Institute.

Among major Chinese cities, new home transactions in Beijing and Shanghai slumped 38 percent and 28 percent in December, respectively, compared with the same period in 2016.

"This has reflected a cooling trend in the market," said Lai Qin, researcher with the institute.

China's property market has cooled as home prices have faltered or posted slower growth in major cities amid government policies to curb speculation.

Real estate investment in China rose 7.5 percent year-on-year during January-November of 2017, down from 7.8 percent in the first 10 months, official data showed.

Lai said local governments are expected to hold property policies stable and consistent, which could lead to a further decline in home transactions in January.