Business / Industries

Home price growth accelerated in Nov

By Zheng Yangpeng ( Updated: 2015-12-18 17:29

China's new home price growth picked up momentum in November, registering a faster month-on-month growth than previous months, according to National Bureau of Statistics.

Average new home prices rose 0.3 percent in November from October, up from 0.2 in October, Reuters calculation from the NBS data showed. Month-on-month price rises were recorded in 33 of 70 major cities tracked by the NBS, up from 27 in October.

Prices have been risen in month-on-month basis since May. Shenzhen led the nation with a 2.9 percent jump over October: in year-on-year basis price there has risen 44.6 percent; Shanghai rose 1.9 percent (up 15.4 percent from a year ago) while Beijing rose 1 percent (up 9.6 percent from a year earlier).

The price rise was accompanied by a sale pick-up in Nov. Residential sales (in floor space terms) growth in the month accelerated to 7.9 percent from 5.9 percent in October, while in value term soared by 18.2 percent.

BNP Paribas expect property construction, already slumped to 1.3 percent in the first 11 months of this year, will begin to recovery in the second half of 2016 as the decline in land sales appears to be moderating.

"We expect policies aimed at accelerating inventory clearance in lower tier cities – including subsidies for rural populations to encourage home purchase, direct monetary compensation for households affected by urban relocations, and wider usage of provident funds for home purchases," BNP Paribas said in a note Friday.

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